Head to Head Review: CONMED (NYSE:CNMD) and Ambu A/S (OTCMKTS:AMBBY)

Ambu A/S (OTCMKTS:AMBBY) and CONMED (NYSE:CNMD) are both healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.

Valuation and Earnings

This table compares Ambu A/S and CONMED”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ambu A/S	$894.37 million	2.69	$90.19 million	$0.30	34.08
CONMED	$1.37 billion	1.02	$47.06 million	$1.85	25.22

Ambu A/S has higher earnings, but lower revenue than CONMED. CONMED is trading at a lower price-to-earnings ratio than Ambu A/S, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for Ambu A/S and CONMED, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ambu A/S	0	1	0	0	2.00
CONMED	1	7	0	0	1.88

CONMED has a consensus price target of $41.40, suggesting a potential downside of 11.27%. Given CONMED’s higher possible upside, analysts clearly believe CONMED is more favorable than Ambu A/S.

Profitability

This table compares Ambu A/S and CONMED’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ambu A/S	8.18%	8.49%	6.75%
CONMED	4.12%	14.31%	6.33%

Dividends

Ambu A/S pays an annual dividend of $0.03 per share and has a dividend yield of 0.3%. CONMED pays an annual dividend of $0.60 per share and has a dividend yield of 1.3%. Ambu A/S pays out 10.0% of its earnings in the form of a dividend. CONMED pays out 32.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Volatility & Risk

Ambu A/S has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, CONMED has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500.

Summary

Ambu A/S beats CONMED on 8 of the 13 factors compared between the two stocks.

About Ambu A/S

Ambu A/S develops, produces, and sells medical devices to hospitals, clinics, and rescue services worldwide. The company offers anaesthesia, and patient monitoring and diagnostics products. The company also offers endoscopy products, such as bronchoscopes, rhinolaryngoscopes, duodenoscopes, cystoscopes, and display units; and neurology products, including EEG and EMG electrodes, EMG guided injections, and intraoperative monitoring products. It also provides cardiology products consisting of airway management and anaesthesia products, such as bronchoscopes, video laryngoscopes, double and single lumen tubes, endobronchial blockers, laryngeal and face masks, breathing bags, and resuscitators. In addition, the company offers extrication collars, CPR breathing barriers, video laryngoscopes, and training manikins. The company was founded in 1937 and is headquartered in Ballerup, Denmark.

About CONMED

CONMED Corporation, a medical technology company, develops, manufactures, and sells surgical devices and related equipment for surgical procedures worldwide. The company offers orthopedic surgery products, including BioBrace, TruShot with Y-Knot All-In-One Soft Tissue Fixation System, Y-knot All-Suture Anchors, and Agro Knotless Suture Anchors, which provide clinical solutions to orthopedic surgeons for the augmentation and repair of soft tissue injuries, as well as provides supporting products that enable surgeons to perform minimally invasive sports medicine surgeries. It markets orthopedic surgery products under the Hall, CONMED Linvatec, Concept, and Shutt brands. The company also provides battery-powered and autoclavable bone power tool systems for use in orthopedic, arthroscopic, oral/maxillofacial, podiatric, spinal, and cardiothoracic surgeries under Hall surgical brand name. In addition, it offers general surgery products, including clinical insufflation systems under AirSeal brand; smoke removal devices under Buffalo Filter brand; endomechanical products, such as tissue retrieval bags, trocars, suction irrigation devices, graspers, scissors, and dissectors used in minimally invasive surgeries; and electrosurgical solution comprising monopolar and bipolar generators, argon beam coagulation generators, handpieces, smoke management systems and other accessories. Further, the company provides endoscopic technologies, including therapeutic and diagnostic products for use in gastroenterology procedures, and products for the treatment of diseases of the dilatation, hemostasis, biliary, structure management, and infection prevention and patient monitoring, including ECG and EEG electrodes, and cardiac defibrillation pads. It markets its products directly to hospitals, surgery centers, and other healthcare institutions, as well as through medical specialty distributors. CONMED Corporation was incorporated in 1970 and is headquartered in Largo, Florida.