Sonic Healthcare (OTCMKTS:SKHHY) versus CochLear (OTCMKTS:CHEOY) Financial Analysis

CochLear (OTCMKTS:CHEOY) and Sonic Healthcare (OTCMKTS:SKHHY) are both mid-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Earnings & Valuation

This table compares CochLear and Sonic Healthcare”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CochLear	$1.53 billion	5.34	$251.85 million	N/A	N/A
Sonic Healthcare	$6.25 billion	1.26	$332.61 million	N/A	N/A

Sonic Healthcare has higher revenue and earnings than CochLear.

Volatility & Risk

CochLear has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Sonic Healthcare has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.

Dividends

CochLear pays an annual dividend of $1.24 per share and has a dividend yield of 2.0%. Sonic Healthcare pays an annual dividend of $0.57 per share and has a dividend yield of 3.6%.

Profitability

This table compares CochLear and Sonic Healthcare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CochLear	N/A	N/A	N/A
Sonic Healthcare	N/A	N/A	N/A

Insider and Institutional Ownership

0.0% of Sonic Healthcare shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for CochLear and Sonic Healthcare, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CochLear	0	2	1	2	3.00
Sonic Healthcare	1	0	1	0	2.00

Sonic Healthcare has a consensus price target of $30.15, indicating a potential upside of 89.50%. Given Sonic Healthcare’s higher probable upside, analysts clearly believe Sonic Healthcare is more favorable than CochLear.

Summary

Sonic Healthcare beats CochLear on 5 of the 9 factors compared between the two stocks.

About CochLear

Cochlear Limited provides implantable hearing solutions for children and adults worldwide. It offers cochlear implant systems, sound processor upgrades, bone conduction systems, accessories, and other products. Cochlear Limited was founded in 1981 and is headquartered in Sydney, Australia.

About Sonic Healthcare

Sonic Healthcare Limited offers medical diagnostic services to medical practitioners, hospitals, community health services, and their collective patients. The company provides laboratory medicine/pathology testing services, such as biochemistry, cytopathology, genetics, haematology, histopathology, immunoserology, microbiology, molecular pathology, prenatal testing, toxicology, and ancillary functions; and radiology services, including magnetic resonance imaging, computed tomography (CT), ultrasound, X-ray, mammography, nuclear medicine, PET CT, interventional procedures, and bone mineral densitometry. It offers primary care medical services comprising general practice clinics, occupational health services, skin cancer clinics, after-hours general practice services, general practice IT solutions, and community-based healthcare services. The company operates in Australia, the United Kingdom, Ireland, the United States, Germany, Switzerland, New Zealand, Belgium, and internationally. Sonic Healthcare Limited was incorporated in 1934 and is headquartered in Sydney, Australia.