Sharps Compliance Corp (NASDAQ: SMED) and Stericycle (NASDAQ:SRCL) are both industrial products companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, earnings, profitability, risk, analyst recommendations and dividends.

Profitability

This table compares Sharps Compliance Corp and Stericycle’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sharps Compliance Corp -3.39% -2.36% -1.68%
Stericycle -0.07% 14.35% 5.79%

Earnings & Valuation

This table compares Sharps Compliance Corp and Stericycle’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sharps Compliance Corp $38.19 million 2.09 $1.00 million ($0.07) -71.28
Stericycle $3.61 billion 1.70 $777.58 million ($0.26) -277.38

Stericycle has higher revenue and earnings than Sharps Compliance Corp. Stericycle is trading at a lower price-to-earnings ratio than Sharps Compliance Corp, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Sharps Compliance Corp and Stericycle, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sharps Compliance Corp 0 0 2 0 3.00
Stericycle 2 5 6 0 2.31

Sharps Compliance Corp presently has a consensus target price of $7.50, indicating a potential upside of 50.30%. Stericycle has a consensus target price of $80.91, indicating a potential upside of 12.19%. Given Sharps Compliance Corp’s stronger consensus rating and higher possible upside, research analysts clearly believe Sharps Compliance Corp is more favorable than Stericycle.

Volatility and Risk

Sharps Compliance Corp has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, Stericycle has a beta of 0.15, suggesting that its share price is 85% less volatile than the S&P 500.

Institutional and Insider Ownership

25.0% of Sharps Compliance Corp shares are owned by institutional investors. Comparatively, 93.7% of Stericycle shares are owned by institutional investors. 20.3% of Sharps Compliance Corp shares are owned by company insiders. Comparatively, 3.3% of Stericycle shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Stericycle beats Sharps Compliance Corp on 7 of the 13 factors compared between the two stocks.

About Sharps Compliance Corp

Sharps Compliance Corp. is a provider of waste management services, including medical, pharmaceutical and hazardous. The Company’s solutions include Sharps Recovery System, TakeAway Medication Recovery System, MedSafe, Route-Based Pickup Service, TakeAway Recycle System, ComplianceTRAC, Universal Waste Shipback Systems and Other Solutions. The Company’s solutions facilitate the collection, containment, transportation and treatment of various types of healthcare-related materials, including hypodermic needles, lancets and other devices or objects used to puncture or lacerate the skin, or sharps, hazardous waste and unused consumer dispensed medications and over-the-counter drugs. It assists its customers in determining which of its solution offerings fit for the collection, containment, return transportation and treatment of medical waste, used healthcare materials, pharmaceutical waste, hazardous waste and unused dispensed medications. It provides tracking and reporting tools.

About Stericycle

Stericycle, Inc. is a business-to-business services provider. The Company focuses on regulated and compliance solutions for healthcare, retail, and commercial businesses. The Company’s segments include Domestic and Canada Regulated Waste and Compliance Services (RCS), Domestic Communication and Related Services (CRS), International RCS and All other. The Domestic and Canada RCS and International RCS segments include medical waste disposal, pharmaceutical waste disposal, hazardous waste management, sustainability solutions for expired or unused inventory, secure information destruction of documents and e-media, training and consulting through its Steri-Safe and Clinical Services programs, and other regulatory compliance services. The Domestic CRS segment consists of inbound/outbound communication, automated patient reminders, online scheduling, notifications, product retrievals, product returns and quality audits.

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