Cantel Medical (NYSE:CMD) and Neuronetics (NASDAQ:STIM) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Cantel Medical and Neuronetics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cantel Medical 0 0 2 0 3.00
Neuronetics 0 0 5 0 3.00

Cantel Medical presently has a consensus target price of $114.00, indicating a potential upside of 32.59%. Neuronetics has a consensus target price of $36.33, indicating a potential upside of 100.74%. Given Neuronetics’ higher probable upside, analysts plainly believe Neuronetics is more favorable than Cantel Medical.

Earnings & Valuation

This table compares Cantel Medical and Neuronetics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cantel Medical $871.92 million 4.11 $91.04 million $2.51 34.25
Neuronetics $40.43 million 7.87 -$16.05 million N/A N/A

Cantel Medical has higher revenue and earnings than Neuronetics.

Dividends

Cantel Medical pays an annual dividend of $0.17 per share and has a dividend yield of 0.2%. Neuronetics does not pay a dividend. Cantel Medical pays out 6.8% of its earnings in the form of a dividend.

Profitability

This table compares Cantel Medical and Neuronetics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cantel Medical 10.44% 16.99% 10.96%
Neuronetics N/A N/A N/A

Insider and Institutional Ownership

83.1% of Cantel Medical shares are held by institutional investors. Comparatively, 60.8% of Neuronetics shares are held by institutional investors. 11.7% of Cantel Medical shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Cantel Medical beats Neuronetics on 8 of the 12 factors compared between the two stocks.

About Cantel Medical

Cantel Medical Corp. provides infection prevention and control products and services for the healthcare market. The company's Endoscopy segment offers automated endoscope reprocessing systems; infectants and sterilants; detergents; leak testing and manual cleaning products; storage cabinets, transport systems, and mobile medical carts; manual cleaning products; endoscope process tracking products; other consumables, accessories, and supplies for use in disinfect rigid endoscopes, flexible endoscopes, and other instrumentation; and technical maintenance services. Its Water Purification and Filtration segment provides dialysis water purification and bicarbonate mixing systems; hollow fiber filters, and other filtration and separation products; liquid disinfectants and cold sterilization products; dry fog products; room temperature sterilization equipment and services; and clean-room certification and decontamination services for the dialysis and other healthcare, research laboratory and pharmaceutical, food and beverage, and commercial industrial customers. The company's Healthcare Disposables segment offers biological indicators, chemical integrators, sterilization pouches, towels, bibs, tray liners, sponges, nitrous oxide/oxygen sedation equipment and related single-use disposable nasal masks, face masks, and shields. It also provides hand sanitizers, germicidal wipes, disinfectants, surface disinfectants, waterline treatment products, amalgam separators, saliva ejectors, evacuator tips, plastic cups, prophy angles, and prophy paste. The company's Dialysis segment provides hemodialysis concentrates and other ancillary supplies; medical device reprocessing systems; and sterilants and disinfectants. The company sells its products through its direct distribution network in the United States; and directly or under third-party distribution agreements internationally. Cantel Medical Corp. was founded in 1963 and is headquartered in Little Falls, New Jersey.

About Neuronetics

Neuronetics, Inc., a commercial stage medical technology company, designs, develops, and markets products for patients with psychiatric disorders. It offers NeuroStar Advanced Therapy System, a non-invasive and non-systemic office-based treatment for adult patients with major depressive disorder. The company's NeuroStar Advanced Therapy System uses transcranial magnetic stimulation to create a pulsed MRI-strength magnetic field, which induces electrical currents designed to stimulate specific areas of the brain associated with mood. Neuronetics, Inc. was incorporated in 2003 and is headquartered in Malvern, Pennsylvania.

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