Contrasting BG Medicine (OTCMKTS:BGMD) & Sotera Health (NASDAQ:SHC)

BG Medicine (OTCMKTS:BGMD) and Sotera Health (NASDAQ:SHC) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.

Profitability

This table compares BG Medicine and Sotera Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BG Medicine	N/A	N/A	N/A
Sotera Health	2.14%	39.42%	5.66%

Insider and Institutional Ownership

91.0% of Sotera Health shares are held by institutional investors. 6.5% of BG Medicine shares are held by company insiders. Comparatively, 47.6% of Sotera Health shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

BG Medicine has a beta of 2.79, meaning that its stock price is 179% more volatile than the S&P 500. Comparatively, Sotera Health has a beta of 1.84, meaning that its stock price is 84% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for BG Medicine and Sotera Health, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BG Medicine	0	0	0	0	0.00
Sotera Health	0	1	4	0	2.80

Sotera Health has a consensus price target of $16.00, suggesting a potential upside of 2.37%. Given Sotera Health’s stronger consensus rating and higher possible upside, analysts plainly believe Sotera Health is more favorable than BG Medicine.

Earnings & Valuation

This table compares BG Medicine and Sotera Health”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BG Medicine	N/A	N/A	N/A	N/A	N/A
Sotera Health	$1.10 billion	4.03	$44.34 million	$0.08	195.38

Sotera Health has higher revenue and earnings than BG Medicine.

Summary

Sotera Health beats BG Medicine on 9 of the 10 factors compared between the two stocks.

About BG Medicine

BG Medicine, Inc. engages in the development and commercialization of diagnostic products used to guide the patients suffering from heart failure and related disorders in the United States. The company offers BGM Galectin-3 Test, an in vitro diagnostic device that measures galectin-3 in serum or plasma by enzyme linked immunosorbent assay on a microtiter plate platform; and CardioSCORE Test, a multi-analyte biomarker-based blood test used for the assessment of near-term risk of atherothrombotic cardiovascular events, such as heart attack and ischemic stroke. It has license, development, and commercialization agreements with Abbott Laboratories, bioMérieux SA, Siemens Healthcare Diagnostics Inc., and Alere Inc. for the automated instrument versions of galectin-3 test; and a strategic collaboration with Abbott Laboratories to develop and commercialize galectin-3 assay kits, and related control kits and calibrators. The company was formerly known as Beyond Genomics, Inc. and changed its name to BG Medicine, Inc. in October 2004. BG Medicine, Inc. was founded in 2000 and is headquartered in Waltham, Massachusetts.

About Sotera Health

Sotera Health Company engages in the provision of sterilization, lab testing, and advisory services in the United States and internationally. The company operates through three segments: Sterigenics, Nordion, and Nelson Labs. It provides mission-critical end-to-end sterilization services, including gamma and electron beam irradiation, and ethylene oxide processing, as well as designs, installs, and maintains gamma irradiation systems. The company also provides microbiological and analytical chemistry testing, as well as technical assistance, regulatory consulting, and advisory services. It serves medical devices, pharmaceuticals, food safety, agricultural products, cancer treatment, and high-performance materials industries, as well as commercial, advanced, and specialty application industries. The company was formerly known as Sotera Health Topco, Inc. and changed its name to Sotera Health Company in October 2020. Sotera Health Company was incorporated in 2015 and is headquartered in Broadview Heights, Ohio.