STERIS (NYSE:STE – Get Free Report) is one of 511 public companies in the “Healthcare Equipment & Supplies” industry, but how does it compare to its rivals? We will compare STERIS to similar businesses based on the strength of its valuation, profitability, institutional ownership, dividends, earnings, analyst recommendations and risk.
Insider & Institutional Ownership
94.7% of STERIS shares are held by institutional investors. Comparatively, 40.5% of shares of all “Healthcare Equipment & Supplies” companies are held by institutional investors. 1.1% of STERIS shares are held by company insiders. Comparatively, 14.8% of shares of all “Healthcare Equipment & Supplies” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for STERIS and its rivals, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| STERIS | 0 | 1 | 3 | 0 | 2.75 |
| STERIS Competitors | 4248 | 10477 | 18202 | 823 | 2.46 |
STERIS presently has a consensus target price of $271.33, indicating a potential upside of 19.49%. As a group, “Healthcare Equipment & Supplies” companies have a potential upside of 25.77%. Given STERIS’s rivals higher possible upside, analysts plainly believe STERIS has less favorable growth aspects than its rivals.
Valuation & Earnings
This table compares STERIS and its rivals revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| STERIS | $6.04 billion | $782.30 million | 27.76 |
| STERIS Competitors | $1.90 billion | $137.71 million | 10.74 |
STERIS has higher revenue and earnings than its rivals. STERIS is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
Profitability
This table compares STERIS and its rivals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| STERIS | 13.34% | 14.34% | 9.66% |
| STERIS Competitors | -278.23% | -150.07% | -21.87% |
Dividends
STERIS pays an annual dividend of $2.76 per share and has a dividend yield of 1.2%. STERIS pays out 33.7% of its earnings in the form of a dividend. As a group, “Healthcare Equipment & Supplies” companies pay a dividend yield of 2.2% and pay out 54.2% of their earnings in the form of a dividend. STERIS has increased its dividend for 20 consecutive years.
Volatility and Risk
STERIS has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, STERIS’s rivals have a beta of 2.53, suggesting that their average share price is 153% more volatile than the S&P 500.
Summary
STERIS beats its rivals on 10 of the 15 factors compared.
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.
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