Contrasting ClearPoint Neuro (NASDAQ:CLPT) and STERIS (NYSE:STE)

STERIS (NYSE:STE) and ClearPoint Neuro (NASDAQ:CLPT) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, earnings, risk, valuation, institutional ownership and profitability.

Profitability

This table compares STERIS and ClearPoint Neuro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
STERIS	12.07%	14.43%	9.52%
ClearPoint Neuro	-67.40%	-114.28%	-48.09%

Earnings and Valuation

This table compares STERIS and ClearPoint Neuro”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
STERIS	$5.46 billion	4.83	$614.64 million	$6.96	38.62
ClearPoint Neuro	$34.33 million	12.13	-$18.91 million	($0.84)	-17.44

STERIS has higher revenue and earnings than ClearPoint Neuro. ClearPoint Neuro is trading at a lower price-to-earnings ratio than STERIS, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for STERIS and ClearPoint Neuro, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
STERIS	0	2	7	0	2.78
ClearPoint Neuro	1	0	3	0	2.50

STERIS currently has a consensus price target of $273.50, indicating a potential upside of 1.75%. ClearPoint Neuro has a consensus price target of $19.67, indicating a potential upside of 34.24%. Given ClearPoint Neuro’s higher probable upside, analysts clearly believe ClearPoint Neuro is more favorable than STERIS.

Risk & Volatility

STERIS has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, ClearPoint Neuro has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.

Insider & Institutional Ownership

94.7% of STERIS shares are owned by institutional investors. Comparatively, 30.1% of ClearPoint Neuro shares are owned by institutional investors. 1.1% of STERIS shares are owned by insiders. Comparatively, 7.0% of ClearPoint Neuro 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.

Summary

STERIS beats ClearPoint Neuro on 11 of the 14 factors compared between the two stocks.

About STERIS

STERIS plc provides infection prevention products and services worldwide. It operates through four segments: Healthcare, Applied Sterilization Technologies, Life Sciences, and Dental. The Healthcare segment offers cleaning chemistries and sterility assurance products; automated endoscope reprocessing system and tracking products; endoscopy accessories, washers, sterilizers, and other pieces of capital equipment for the operation of a sterile processing department; and equipment used directly in the operating room, including surgical tables, lights, and connectivity solutions, as well as equipment management services. It also provides capital equipment installation, maintenance, upgradation, repair, and troubleshooting services; preventive maintenance programs and repair services; instrument and endoscope repair and maintenance services; and custom process improvement consulting and outsourced instrument sterile processing services. The Applied Sterilization Technologies segment provides contract sterilization and testing services for medical device and pharmaceutical manufacturers through a network of approximately 50 contract sterilization and laboratory facilities. The Life Sciences segment designs, manufactures and sells consumable products, such as formulated cleaning chemistries, barrier, sterility assurance products, steam and vaporized hydrogen peroxide sterilizers, and washer disinfectors. This segment also offers equipment installation, maintenance, upgradation, repair, and troubleshooting services; and preventive maintenance programs and repair services. The Dental segment provides hand and electric-powered dental instruments, infection control products, conscious sedation, personal protective equipment, and water quality products for dental suite. The company serves its products and services to hospitals, other healthcare providers, and pharmaceutical manufacturers. The company was founded in 1985 and is based in Dublin, Ireland.

About ClearPoint Neuro

ClearPoint Neuro, Inc. operates as a medical device company primarily in the United States. It develops and commercializes platforms for performing minimally invasive surgical procedures in the brain under magnetic resonance imaging guided interventions. The company offers ClearPoint system, an integrated system for the insertion of deep brain stimulation electrodes, biopsy needles, and laser catheters, as well as the infusion of pharmaceuticals into the brain. It has license and collaboration agreement with Clinical Laserthermia Systems AB; license and research agreement with Koninklijke Philips N.V., UCB Biopharma SRL, and University of California and San Francisco; and development and license agreement with NE Scientific, LLC. The company was formerly known as MRI Interventions, Inc. and changed its name to ClearPoint Neuro, Inc. in February 2020. ClearPoint Neuro, Inc. was incorporated in 1998 and is headquartered in Solana Beach, California.