STERIS (NYSE:STE – Get Free Report) and Pulse Biosciences (NASDAQ:PLSE – Get Free Report) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, dividends, risk and profitability.
Volatility & Risk
STERIS has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Pulse Biosciences has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500.
Earnings & Valuation
This table compares STERIS and Pulse Biosciences”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| STERIS | $5.46 billion | 4.01 | $614.64 million | $7.17 | 31.15 |
| Pulse Biosciences | $350,000.00 | 4,710.74 | -$72.78 million | ($1.08) | -22.45 |
STERIS has higher revenue and earnings than Pulse Biosciences. Pulse Biosciences is trading at a lower price-to-earnings ratio than STERIS, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares STERIS and Pulse Biosciences’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| STERIS | 12.15% | 14.34% | 9.58% |
| Pulse Biosciences | N/A | -73.77% | -63.98% |
Analyst Recommendations
This is a breakdown of current recommendations for STERIS and Pulse Biosciences, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| STERIS | 0 | 2 | 5 | 0 | 2.71 |
| Pulse Biosciences | 1 | 0 | 2 | 0 | 2.33 |
STERIS currently has a consensus price target of $275.20, suggesting a potential upside of 23.20%. Pulse Biosciences has a consensus price target of $30.00, suggesting a potential upside of 23.71%. Given Pulse Biosciences’ higher probable upside, analysts clearly believe Pulse Biosciences is more favorable than STERIS.
Institutional and Insider Ownership
94.7% of STERIS shares are held by institutional investors. Comparatively, 77.0% of Pulse Biosciences shares are held by institutional investors. 1.1% of STERIS shares are held by company insiders. Comparatively, 74.6% of Pulse Biosciences shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
STERIS beats Pulse Biosciences on 10 of the 14 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 Pulse Biosciences
Pulse Biosciences, Inc. operates as a novel bioelectric medicine company. The company offers CellFX System, a tunable, software-enabled, and console-based platform that delivers nano second duration pulses of electrical energy to non-thermally clear targeted cells while sparing adjacent non-cellular tissue to treat a various medical condition by using its Nano-Pulse Stimulation technology. The company was formerly known as Electroblate, Inc. and changed its name to Pulse Biosciences, Inc. in December 2015. Pulse Biosciences, Inc. was incorporated in 2014 and is headquartered in Hayward, California.
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