Echo Therapeutics (OTCMKTS:ECTE) and STERIS (NYSE:STE) Financial Analysis

Echo Therapeutics (OTCMKTS:ECTE) and STERIS (NYSE:STE) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitability.

Institutional and Insider Ownership

94.7% of STERIS shares are owned by institutional investors. 7.0% of Echo Therapeutics shares are owned by insiders. Comparatively, 1.1% of STERIS shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Echo Therapeutics and STERIS”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Echo Therapeutics	N/A	N/A	N/A	N/A	N/A
STERIS	$5.46 billion	4.73	$614.64 million	$6.96	37.84

STERIS has higher revenue and earnings than Echo Therapeutics.

Analyst Ratings

This is a summary of recent ratings for Echo Therapeutics and STERIS, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Echo Therapeutics	0	0	0	0	0.00
STERIS	0	2	7	0	2.78

STERIS has a consensus price target of $273.50, indicating a potential upside of 3.86%. Given STERIS’s stronger consensus rating and higher possible upside, analysts clearly believe STERIS is more favorable than Echo Therapeutics.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Echo Therapeutics	N/A	N/A	N/A
STERIS	12.07%	14.43%	9.52%

Summary

STERIS beats Echo Therapeutics on 8 of the 9 factors compared between the two stocks.

About Echo Therapeutics

Echo Therapeutics, Inc. is a medical device company, which engages in the development of non-invasive, and wireless continuous glucose monitoring system for use in the diabetes outpatient market. It offers needle-free skin preparation device as a platform technology that allows for enhanced skin permeation enabling extraction of analytes, such as glucose and delivery of topical pharmaceuticals. The company was founded in 1989 and is headquartered in Iselin, NJ.

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.