Smith & Nephew SNATS, Inc. (SNN) vs STERIS plc (STE)

Smith & Nephew SNATS, Inc. and STERIS plc are both Medical Devices companies. STERIS plc is the larger, with a market value of $20.4B against $11.2B — 1.8× the size. STERIS plc trades at the lower P/E: 25.4× against 32.8×. STERIS plc grew revenue faster over the last twelve months: 8.37% against 4.81%. STERIS plc has the higher net margin (13.3% vs 6.71%) and the higher return on invested capital (8.27% vs 0.00%). Both pay a dividend; Smith & Nephew SNATS, Inc. yields more (2.67% vs 0.92%). Across the 23 metrics below, STERIS plc leads on 13 and Smith & Nephew SNATS, Inc. on 10.

Valuation

Metric SNN STE Medical Devices median
P/E 32.80 25.45 22.18
P/S 1.15 3.38 2.70
P/B 2.33 2.82 2.46
Price to free cash flow 5.97 21.79 22.53
EV/EBITDA 5.66 13.35 11.78
EV/Sales 1.39 3.61 2.38
Earnings yield 3.05% 3.93% (8.22%)
Free cash flow yield 16.74% 4.59% (7.80%)

Profitability

Metric SNN STE Medical Devices median
Gross margin 70.52% 44.43% 56.01%
Operating margin 0.00% 18.91% (15.03%)
Net margin 6.71% 13.33% (20.40%)
Free cash flow margin 0.00% 15.50% (7.24%)
Return on equity 0.00% 11.35% (15.32%)
Return on assets 0.00% 7.62% (19.72%)
Return on invested capital 0.00% 8.27% (10.33%)

Growth

Metric SNN STE Medical Devices median
Revenue growth (TTM) 4.81% 8.37% 8.80%
EPS growth (last fiscal year) 52.34% 27.90% —
Revenue growth, 5-year CAGR 6.21% 13.82% 15.23%
Net income growth, 5-year CAGR 6.89% 14.51% 0.00%

Health

Metric SNN STE Medical Devices median
Debt to equity 0.62 0.26 0.07
Current ratio 2.14 1.91 2.50
Net debt to EBITDA 1.92 0.94 0.49

Dividend

Metric SNN STE Medical Devices median
Dividend yield 2.67% 0.92% 0.94%
Payout ratio 1.50 1.55 0.00

Size

Metric SNN STE Medical Devices median
Market cap 11.17b 20.36b 172.91m

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