CochLear (OTCMKTS:CHEOY) and Sonic Healthcare (OTCMKTS:SKHHY) Financial Review

Sonic Healthcare (OTCMKTS:SKHHY) and CochLear (OTCMKTS:CHEOY) are both mid-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.

Risk and Volatility

Sonic Healthcare has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, CochLear has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500.

Profitability

This table compares Sonic Healthcare and CochLear’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sonic Healthcare	N/A	N/A	N/A
CochLear	N/A	N/A	N/A

Insider and Institutional Ownership

0.0% of Sonic Healthcare shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Sonic Healthcare pays an annual dividend of $0.75 per share and has a dividend yield of 4.5%. CochLear pays an annual dividend of $1.24 per share and has a dividend yield of 1.9%.

Valuation and Earnings

This table compares Sonic Healthcare and CochLear”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sonic Healthcare	$6.25 billion	1.33	$332.61 million	N/A	N/A
CochLear	$1.53 billion	5.75	$251.85 million	N/A	N/A

Sonic Healthcare has higher revenue and earnings than CochLear.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Sonic Healthcare and CochLear, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sonic Healthcare	1	0	1	0	2.00
CochLear	0	2	1	2	3.00

Sonic Healthcare presently has a consensus target price of $30.15, suggesting a potential upside of 79.68%. Given Sonic Healthcare’s higher possible upside, equities analysts plainly believe Sonic Healthcare is more favorable than CochLear.

Summary

Sonic Healthcare beats CochLear on 5 of the 9 factors compared between the two stocks.

About Sonic Healthcare

Sonic Healthcare Limited offers medical diagnostic services to medical practitioners, hospitals, community health services, and their collective patients. The company provides laboratory medicine/pathology testing services, such as biochemistry, cytopathology, genetics, haematology, histopathology, immunoserology, microbiology, molecular pathology, prenatal testing, toxicology, and ancillary functions; and radiology services, including magnetic resonance imaging, computed tomography (CT), ultrasound, X-ray, mammography, nuclear medicine, PET CT, interventional procedures, and bone mineral densitometry. It offers primary care medical services comprising general practice clinics, occupational health services, skin cancer clinics, after-hours general practice services, general practice IT solutions, and community-based healthcare services. The company operates in Australia, the United Kingdom, Ireland, the United States, Germany, Switzerland, New Zealand, Belgium, and internationally. Sonic Healthcare Limited was incorporated in 1934 and is headquartered in Sydney, Australia.

About CochLear

Cochlear Limited provides implantable hearing solutions for children and adults worldwide. It offers cochlear implant systems, sound processor upgrades, bone conduction systems, accessories, and other products. Cochlear Limited was founded in 1981 and is headquartered in Sydney, Australia.