Critical Analysis: Smith & Nephew SNATS (NYSE:SNN) vs. Evolus (NASDAQ:EOLS)

Smith & Nephew SNATS (NYSE:SNN) and Evolus (NASDAQ:EOLS) are both medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, valuation, profitability, dividends and earnings.

Profitability

This table compares Smith & Nephew SNATS and Evolus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Smith & Nephew SNATS	N/A	N/A	N/A
Evolus	-14.39%	N/A	-19.03%

Risk & Volatility

Smith & Nephew SNATS has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, Evolus has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500.

Institutional & Insider Ownership

25.6% of Smith & Nephew SNATS shares are owned by institutional investors. Comparatively, 90.7% of Evolus shares are owned by institutional investors. 1.0% of Smith & Nephew SNATS shares are owned by company insiders. Comparatively, 5.0% of Evolus shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Smith & Nephew SNATS and Evolus”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smith & Nephew SNATS	$6.16 billion	2.06	$625.00 million	N/A	N/A
Evolus	$297.18 million	1.46	-$51.64 million	($0.67)	-9.81

Smith & Nephew SNATS has higher revenue and earnings than Evolus.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Smith & Nephew SNATS and Evolus, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smith & Nephew SNATS	0	4	1	1	2.50
Evolus	1	1	4	0	2.50

Smith & Nephew SNATS presently has a consensus price target of $30.93, indicating a potential upside of 3.89%. Evolus has a consensus price target of $16.00, indicating a potential upside of 143.53%. Given Evolus’ higher possible upside, analysts clearly believe Evolus is more favorable than Smith & Nephew SNATS.

Summary

Smith & Nephew SNATS beats Evolus on 6 of the 11 factors compared between the two stocks.

About Smith & Nephew SNATS

Smith & Nephew plc engages in the development, manufacture, marketing, and sale of medical devices. It operates through the following segments: Orthopaedics, Sports Medicine and ENT, and Advanced Wound Management. The Orthopaedics and Sports Medicine and ENT segment consists of the following businesses: knee implants, hip implants, other reconstruction, trauma, sports medicine joint repair, arthroscopic enabling technologies, and ENT. The Advanced Wound Management segment includes advanced wound care, advanced wound bioactives, and advanced wound devices businesses. The company was founded in 1856 and is headquartered in Watford, the United Kingdom.

About Evolus

Evolus, Inc., a performance beauty company, focuses on delivering products in the cash-pay aesthetic market in the United States, Canada, and Europe. The company offers Jeuveau, a proprietary 900 kilodalton purified botulinum toxin type A formulation for the temporary improvement in the appearance of moderate to severe glabellar lines in adults. It also provides dermal filler products under the Estyme and Evolysse names. The company was incorporated in 2012 and is headquartered in Newport Beach, California.