Comparing Bio-Rad Laboratories (BIO) and SurModics (SRDX)

Bio-Rad Laboratories (NYSE: BIO) and SurModics (NASDAQ:SRDX) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.

Insider and Institutional Ownership

63.9% of Bio-Rad Laboratories shares are owned by institutional investors. Comparatively, 85.6% of SurModics shares are owned by institutional investors. 28.3% of Bio-Rad Laboratories shares are owned by insiders. Comparatively, 6.4% of SurModics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Bio-Rad Laboratories and SurModics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bio-Rad Laboratories $2.07 billion 3.60 $28.12 million $0.79 317.05
SurModics $73.11 million 5.05 $3.92 million $0.29 97.24

Bio-Rad Laboratories has higher revenue and earnings than SurModics. SurModics is trading at a lower price-to-earnings ratio than Bio-Rad Laboratories, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for Bio-Rad Laboratories and SurModics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bio-Rad Laboratories 0 0 3 0 3.00
SurModics 0 0 2 0 3.00

Bio-Rad Laboratories currently has a consensus price target of $273.33, suggesting a potential upside of 9.13%. SurModics has a consensus price target of $40.00, suggesting a potential upside of 41.84%. Given SurModics’ higher possible upside, analysts plainly believe SurModics is more favorable than Bio-Rad Laboratories.

Profitability

This table compares Bio-Rad Laboratories and SurModics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bio-Rad Laboratories 1.15% 3.44% 2.34%
SurModics 5.37% 6.18% 5.11%

Risk and Volatility

Bio-Rad Laboratories has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, SurModics has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Summary

Bio-Rad Laboratories beats SurModics on 7 of the 13 factors compared between the two stocks.

About Bio-Rad Laboratories

Bio-Rad Laboratories, Inc. (Bio-Rad) is a manufacturer and distributor of its life science research and clinical diagnostics products. The Company operates through two segments: Life Science and Clinical Diagnostics. It manufactures and supplies the life science research, healthcare, analytical chemistry and other markets with a range of products and systems used to separate complex chemical and biological materials and to identify, analyze and purify their components. The Life Science segment develops, manufactures, sells and services reagents, apparatus and instruments used for biological research. The Clinical Diagnostics segment develops, manufactures, sells and services automated test systems, informatics systems, test kits and specialized quality controls for the healthcare market. As of December 31, 2016, Bio-Rad sold more than 8,000 products and services to a client base, including scientific research, healthcare, education and government customers around the world.

About SurModics

Surmodics, Inc. is a provider of medical device and in vitro diagnostic technologies to the healthcare industry. The Company operates through two segments: Medical Device and In Vitro Diagnostics. The Company’s Medical Device segment consists of surface modification coating technologies to improve access, deliverability and predictable deployment of medical devices; international cardiology and peripheral balloon design, development and manufacturing, as well as drug delivery coating technologies to provide site-specific drug delivery from the surface of a medical device. The Company’s In Vitro Diagnostics segment manufactures or sells components for in vitro diagnostic immunoassay and molecular tests. The In Vitro Diagnostics segment manufactures and sells surface coatings to the diagnostic, biomedical research and life science markets. In Vitro Diagnostics segment offers protein stabilization reagents, substrates, antigens and surface coatings.

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