CONMED (NASDAQ: CNMD) and SurModics (NASDAQ:SRDX) are both small-cap healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.
This table compares CONMED and SurModics’ net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Volatility & Risk
CONMED has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, SurModics has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for CONMED and SurModics, as reported by MarketBeat.com.
||Strong Buy Ratings
CONMED currently has a consensus price target of $55.00, suggesting a potential downside of 8.49%. SurModics has a consensus price target of $40.00, suggesting a potential upside of 45.99%. Given SurModics’ stronger consensus rating and higher probable upside, analysts plainly believe SurModics is more favorable than CONMED.
CONMED pays an annual dividend of $0.80 per share and has a dividend yield of 1.3%. SurModics does not pay a dividend. CONMED pays out 40.8% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares CONMED and SurModics’ revenue, earnings per share and valuation.
||Earnings Per Share
CONMED has higher revenue and earnings than SurModics.
Institutional and Insider Ownership
98.5% of CONMED shares are owned by institutional investors. Comparatively, 84.8% of SurModics shares are owned by institutional investors. 2.6% of CONMED shares are owned by insiders. Comparatively, 7.7% of SurModics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
SurModics beats CONMED on 9 of the 15 factors compared between the two stocks.
CONMED Company Profile
CONMED Corporation is a medical technology company. The Company is engaged in the development, manufacturing and sale on a global basis of surgical devices and related equipment. The Company provides surgical devices and equipment for minimally invasive procedures. The Company’s products are used by surgeons and physicians in a range of specialties, including orthopedics, general surgery, gynecology, neurosurgery and gastroenterology. The Company’s product lines consist of orthopedic surgery, general surgery and surgical visualization. As of December 31, 2016, the Company’s products are distributed domestically directly to over 6,000 hospitals, surgery centers and other healthcare institutions, as well as through medical specialty distributors. The Company’s orthopedic surgery product lines include sports medicine, powered surgical instruments, and sports biologics and tissue. These products are marketed under a range of brands, including Hall, CONMED Linvatec, Concept and Shutt.
SurModics Company Profile
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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