Critical Review: Abbott Laboratories (NYSE:ABT) & Sanara MedTech (NASDAQ:SMTI)

Sanara MedTech (NASDAQ:SMTI) and Abbott Laboratories (NYSE:ABT) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, risk and analyst recommendations.

Volatility & Risk

Sanara MedTech has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, Abbott Laboratories has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Profitability

This table compares Sanara MedTech and Abbott Laboratories’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sanara MedTech	-31.23%	-3.19%	-0.56%
Abbott Laboratories	13.90%	17.62%	10.01%

Insider & Institutional Ownership

8.1% of Sanara MedTech shares are held by institutional investors. Comparatively, 75.2% of Abbott Laboratories shares are held by institutional investors. 42.0% of Sanara MedTech shares are held by company insiders. Comparatively, 0.5% of Abbott Laboratories shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Sanara MedTech and Abbott Laboratories, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sanara MedTech	2	0	2	0	2.00
Abbott Laboratories	0	5	19	2	2.88

Sanara MedTech currently has a consensus price target of $34.00, indicating a potential upside of 58.14%. Abbott Laboratories has a consensus price target of $119.09, indicating a potential upside of 32.84%. Given Sanara MedTech’s higher probable upside, analysts clearly believe Sanara MedTech is more favorable than Abbott Laboratories.

Valuation and Earnings

This table compares Sanara MedTech and Abbott Laboratories”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sanara MedTech	$107.48 million	1.83	-$37.56 million	($3.77)	-5.70
Abbott Laboratories	$44.33 billion	3.52	$6.52 billion	$3.57	25.11

Abbott Laboratories has higher revenue and earnings than Sanara MedTech. Sanara MedTech is trading at a lower price-to-earnings ratio than Abbott Laboratories, indicating that it is currently the more affordable of the two stocks.

Summary

Abbott Laboratories beats Sanara MedTech on 12 of the 15 factors compared between the two stocks.

About Sanara MedTech

Sanara MedTech Inc., a medical technology company, develops, markets, and distributes surgical, wound, and skincare products and services to physicians, hospitals, clinics, and post-acute care settings in the United States. The company offers CellerateRX Surgical, a medical hydrolysate of Type I bovine collagen indicated for the management of surgical, traumatic, and partial- and full-thickness wounds, as well as first- and second-degree burns; and HYCOL, a medical hydrolysate of Type I bovine collagen intended for the management of full and partial thickness wounds, including pressure ulcers, venous and arterial leg ulcers, and diabetic foot ulcers. It also provides BIAKOS Antimicrobial Skin and Wound Cleanser, a patented product that contains synergistic ingredients that have been shown to impact mature biofilm microbes; BIAKOS Antimicrobial Wound Gel, an antimicrobial hydrogel wound dressing that helps against planktonic microbes, as well as immature and mature biofilms; and BIAKOS Antimicrobial Skin and Wound Irrigation Solution. In addition, it develops BIASURGE, a no-rinse surgical solution used for wound irrigation; FORTIFY TRG, a freeze-dried, multi-layer small intestinal submucosa extracellular matrix sheet; FORTIFY FLOWABLE extracellular matrix, an advanced wound care device; TEXAGEN, a multi-layer amniotic membrane allograft used as an anatomical barrier with robust handling that can be sutured for securement; and VIM Amnion Matrix, a homologous wound covering product. Sanara MedTech Inc. was incorporated in 2001 and is based in Fort Worth, Texas.

About Abbott Laboratories

Abbott Laboratories, together with its subsidiaries, discovers, develops, manufactures, and sells health care products worldwide. It operates in four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. The company provides generic pharmaceuticals for the treatment of pancreatic exocrine insufficiency, irritable bowel syndrome or biliary spasm, intrahepatic cholestasis or depressive symptoms, gynecological disorder, hormone replacement therapy, dyslipidemia, hypertension, hypothyroidism, Ménière’s disease and vestibular vertigo, pain, fever, inflammation, and migraine, as well as provides anti-infective clarithromycin, influenza vaccine, and products to regulate physiological rhythm of the colon. It also offers laboratory and transfusion medicine systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion; molecular diagnostics polymerase chain reaction instrument systems that automate the extraction, purification, and preparation of DNA and RNA from patient samples, and detect and measure infectious agents; point of care systems; cartridges for testing blood gas, chemistry, electrolytes, coagulation, and immunoassay; rapid diagnostics lateral flow testing products; molecular point-of-care testing for HIV, SARS-CoV-2, influenza A and B, RSV, and strep A; cardiometabolic test systems; drug and alcohol test, and remote patient monitoring and consumer self-test systems; and informatics and automation solutions for laboratories. In addition, the company provides pediatric and adult nutritional products; rhythm management, electrophysiology, heart failure, vascular, and structural heart devices for the treatment of cardiovascular diseases; diabetes care products, such as glucose and blood glucose monitoring systems; and neuromodulation devices for the management of chronic pain and movement disorders. Abbott Laboratories was founded in 1888 and is based in North Chicago, Illinois.