STERIS (NYSE:STE) & iRadimed (NASDAQ:IRMD) Head to Head Comparison

STERIS (NYSE:STE) and iRadimed (NASDAQ:IRMD) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.

Analyst Ratings

This is a breakdown of recent ratings for STERIS and iRadimed, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
STERIS	0	2	7	0	2.78
iRadimed	0	1	4	0	2.80

STERIS currently has a consensus price target of $273.50, suggesting a potential upside of 5.52%. iRadimed has a consensus price target of $87.33, suggesting a potential downside of 5.13%. Given STERIS’s higher possible upside, research analysts plainly believe STERIS is more favorable than iRadimed.

Profitability

This table compares STERIS and iRadimed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
STERIS	11.61%	14.17%	9.25%
iRadimed	26.61%	23.30%	20.62%

Dividends

STERIS pays an annual dividend of $2.52 per share and has a dividend yield of 1.0%. iRadimed pays an annual dividend of $0.68 per share and has a dividend yield of 0.7%. STERIS pays out 36.2% of its earnings in the form of a dividend. iRadimed pays out 41.2% 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. STERIS has raised its dividend for 20 consecutive years and iRadimed has raised its dividend for 1 consecutive years. STERIS is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares STERIS and iRadimed”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
STERIS	$5.70 billion	4.46	$614.64 million	$6.96	37.24
iRadimed	$80.51 million	14.55	$19.23 million	$1.65	55.79

STERIS has higher revenue and earnings than iRadimed. STERIS is trading at a lower price-to-earnings ratio than iRadimed, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

STERIS has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, iRadimed has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.

Institutional and Insider Ownership

94.7% of STERIS shares are held by institutional investors. Comparatively, 92.3% of iRadimed shares are held by institutional investors. 1.1% of STERIS shares are held by company insiders. Comparatively, 36.8% of iRadimed shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

STERIS beats iRadimed on 9 of the 17 factors compared between the two stocks.

About STERIS

STERIS plc provides infection prevention products and services worldwide. It operates through four segments: Healthcare, Applied Sterilization Technologies, Life Sciences, and Dental. The Healthcare segment offers cleaning chemistries and sterility assurance products; automated endoscope reprocessing system and tracking products; endoscopy accessories, washers, sterilizers, and other pieces of capital equipment for the operation of a sterile processing department; and equipment used directly in the operating room, including surgical tables, lights, and connectivity solutions, as well as equipment management services. It also provides capital equipment installation, maintenance, upgradation, repair, and troubleshooting services; preventive maintenance programs and repair services; instrument and endoscope repair and maintenance services; and custom process improvement consulting and outsourced instrument sterile processing services. The Applied Sterilization Technologies segment provides contract sterilization and testing services for medical device and pharmaceutical manufacturers through a network of approximately 50 contract sterilization and laboratory facilities. The Life Sciences segment designs, manufactures and sells consumable products, such as formulated cleaning chemistries, barrier, sterility assurance products, steam and vaporized hydrogen peroxide sterilizers, and washer disinfectors. This segment also offers equipment installation, maintenance, upgradation, repair, and troubleshooting services; and preventive maintenance programs and repair services. The Dental segment provides hand and electric-powered dental instruments, infection control products, conscious sedation, personal protective equipment, and water quality products for dental suite. The company serves its products and services to hospitals, other healthcare providers, and pharmaceutical manufacturers. The company was founded in 1985 and is based in Dublin, Ireland.

About iRadimed

IRadimed Corp. engages in the development, manufacture, marketing, and distribution of Magnetic Resonance Imaging compatible medical devices. It also provides a non-magnetic Intravenous infusion pump system that is specifically designed for use during MRI procedures. The company was founded by Roger Susi in July 1992 and is headquartered in Winter Springs, FL.