Sotera Health (NASDAQ:SHC – Get Free Report) and CVS Health (NYSE:CVS – Get Free Report) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Profitability
This table compares Sotera Health and CVS Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sotera Health | 6.70% | 42.38% | 6.91% |
| CVS Health | 0.44% | 11.31% | 3.35% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for Sotera Health and CVS Health, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sotera Health | 0 | 3 | 8 | 0 | 2.73 |
| CVS Health | 0 | 4 | 19 | 0 | 2.83 |
Valuation & Earnings
This table compares Sotera Health and CVS Health”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sotera Health | $1.16 billion | 3.58 | $77.94 million | $0.27 | 54.30 |
| CVS Health | $402.07 billion | 0.25 | $1.77 billion | $1.38 | 56.46 |
CVS Health has higher revenue and earnings than Sotera Health. Sotera Health is trading at a lower price-to-earnings ratio than CVS Health, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
91.0% of Sotera Health shares are held by institutional investors. Comparatively, 80.7% of CVS Health shares are held by institutional investors. 47.5% of Sotera Health shares are held by company insiders. Comparatively, 1.2% of CVS Health shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk and Volatility
Sotera Health has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500. Comparatively, CVS Health has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500.
Summary
Sotera Health beats CVS Health on 8 of the 14 factors compared between the two stocks.
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.
About CVS Health
CVS Health Corporation provides health solutions in the United States. It operates through Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments. The Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services. It serves employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups, and expatriates. The Health Services segment offers pharmacy benefit management solutions, including plan design and administration, formulary management, retail pharmacy network management, specialty and mail order pharmacy, clinical, disease management, and medical spend management services. It serves employers, insurance companies, unions, government employee groups, health plans, prescription drug plans, Medicaid managed care plans, CMS, plans offered on public health insurance, and other sponsors of health benefit plans. The Pharmacy & Consumer Wellness segment sells prescription and over-the-counter drugs, consumer health and beauty products, and personal care products. This segment also distributes prescription drugs; and provides related pharmacy consulting and other ancillary services to care facilities and other care settings. It operates online retail pharmacy websites, LTC pharmacies and on-site pharmacies, retail specialty pharmacy stores, compounding pharmacies and branches for infusion and enteral nutrition services. The company was formerly known as CVS Caremark Corporation and changed its name to CVS Health Corporation in September 2014. CVS Health Corporation was incorporated in 1996 and is headquartered in Woonsocket, Rhode Island.
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