Critical Review: Cooper Companies (NASDAQ:COO) & Integra LifeSciences (NASDAQ:IART)

Cooper Companies (NASDAQ:COO) and Integra LifeSciences (NASDAQ:IART) are both healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Cooper Companies and Integra LifeSciences, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cooper Companies	2	11	5	0	2.17
Integra LifeSciences	2	5	1	0	1.88

Cooper Companies currently has a consensus price target of $71.47, indicating a potential upside of 32.57%. Integra LifeSciences has a consensus price target of $18.86, indicating a potential upside of 21.66%. Given Cooper Companies’ stronger consensus rating and higher possible upside, equities analysts clearly believe Cooper Companies is more favorable than Integra LifeSciences.

Volatility & Risk

Cooper Companies has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, Integra LifeSciences has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.

Profitability

This table compares Cooper Companies and Integra LifeSciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cooper Companies	13.46%	10.90%	7.24%
Integra LifeSciences	-0.44%	18.30%	5.30%

Insider and Institutional Ownership

24.4% of Cooper Companies shares are held by institutional investors. Comparatively, 84.8% of Integra LifeSciences shares are held by institutional investors. 2.1% of Cooper Companies shares are held by company insiders. Comparatively, 3.8% of Integra LifeSciences shares are held 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 and Earnings

This table compares Cooper Companies and Integra LifeSciences”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cooper Companies	$4.09 billion	2.50	$374.90 million	$2.93	18.40
Integra LifeSciences	$1.64 billion	0.74	-$516.47 million	($0.09)	-172.22

Cooper Companies has higher revenue and earnings than Integra LifeSciences. Integra LifeSciences is trading at a lower price-to-earnings ratio than Cooper Companies, indicating that it is currently the more affordable of the two stocks.

Summary

Cooper Companies beats Integra LifeSciences on 10 of the 14 factors compared between the two stocks.

About Cooper Companies

The Cooper Companies, Inc., together with its subsidiaries, develops, manufactures, and markets contact lens wearers. The company operates in two segments, CooperVision and CooperSurgical. The CooperVision segment provides spherical lense, including lenses that correct near and farsightedness; and toric and multifocal lenses comprising lenses correcting vision challenges, such as astigmatism, presbyopia, and myopia in the Americas, Europe, Middle East, Africa, and Asia Pacific. The CooperSurgical segment focuses on family and women's health care, which provides fertility products and services, medical devices, and contraception, as well as cryostorage, such as cord blood and cord tissue storage to health care professionals and patients worldwide. It offers surgical and office products, including endosee endometrial imaging products, fetal pillow cephalic elevation devices for use in cesarean sections, illuminated speculum products, lone star retractor systems, loop electrosurgical excision procedure products, mara water ablation systems, paragard contraceptive IUDs, point-of-care, and uterine positioning products, as well as cryostorage, such as cord blood and cord tissue storage; fertility products and services, such as fertility consumables and equipment, donor gamete services, and genomic services, including genetic testing. The company sells its products to distributors, group purchasing organizations, eye care and health care professionals, including independent practices, corporate retailers, hospitals and clinics, and authorized resellers. The Cooper Companies, Inc. was founded in 1958 and is headquartered in San Ramon, California.

About Integra LifeSciences

Integra LifeSciences Holdings Corporation manufactures and sells surgical instruments, neurosurgical products, and wound care products for use in neurosurgery, neurocritical care, and otolaryngology. It operates in two segments, Codman Specialty Surgical and Tissue Technologies. The company offers neurosurgery and neuro critical care products, including tissue ablation equipment, dural repair products, cerebral spinal fluid management devices, intracranial monitoring equipment, and cranial stabilization equipment; and surgical headlamps and instrumentation, as well as after-market services. It also sells instrument patterns, and surgical and lighting products to hospitals and surgery centers, as well as dental, podiatry, and veterinary offices. In addition, the company provides regenerative technology products for the treatment of acute wounds; and surgical tissue repair products for hernia, tendon, peripheral nerve repair and protection. Further, it offers skin and wound repair, plastics and surgical reconstruction products, bone grafts, and nerve and tendon repair products. The company offers its products directly through various sales forces and other distribution channels to the hospitals, integrated health networks, group purchasing organizations, clinicians, surgery centers, and health care providers in the United States, Europe, Asia Pacific, and internationally. Integra LifeSciences Holdings Corporation was incorporated in 1989 and is headquartered in Princeton, New Jersey.