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

Valuation and Earnings

This table compares Smith & Nephew SNATS and RTI Surgical’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Smith & Nephew SNATS $4.68 billion 3.41 $1.32 billion N/A N/A
RTI Surgical $279.95 million 0.98 $15.45 million ($0.38) -12.24

Smith & Nephew SNATS has higher revenue and earnings than RTI Surgical.

Risk & Volatility

Smith & Nephew SNATS has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, RTI Surgical has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500.

Profitability

This table compares Smith & Nephew SNATS and RTI Surgical’s 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
RTI Surgical -6.53% 2.07% 0.94%

Dividends

Smith & Nephew SNATS pays an annual dividend of $0.61 per share and has a dividend yield of 1.7%. RTI Surgical does not pay a dividend. RTI Surgical has raised its dividend for 4 consecutive years.

Institutional & Insider Ownership

6.4% of Smith & Nephew SNATS shares are owned by institutional investors. Comparatively, 70.0% of RTI Surgical shares are owned by institutional investors. 1.0% of Smith & Nephew SNATS shares are owned by company insiders. Comparatively, 4.9% of RTI Surgical shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Smith & Nephew SNATS and RTI Surgical, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Smith & Nephew SNATS 0 4 2 0 2.33
RTI Surgical 0 0 0 0 N/A

Smith & Nephew SNATS Company Profile

Smith & Nephew plc is a medical technology company. The Company is engaged in developing, manufacturing, marketing and selling medical devices and services. Its products and services include Sports Medicine Joint Repair, Arthroscopic Enabling Technologies (AET), Trauma & Extremities, Other Surgical Businesses, Knee Implants, Hip Implants, Advanced Wound Care, Advanced Wound Bioactives and Advanced Wound Devices. The Sports Medicine Joint Repair franchise offers surgeons a range of instruments, technologies and implants necessary to perform minimally invasive surgery of the joints, including the repair of soft tissue injuries and degenerative conditions of the knee, hip and shoulder. The AET franchise offers an array of minimally invasive surgery-enabling systems and devices. The Trauma & Extremities franchise supports healthcare professionals with solutions used by surgeons to stabilize severe fractures, correct bone deformities, treat arthritis and heal soft tissue complications.

RTI Surgical Company Profile

RTI Surgical, Inc. is engaged in producing orthopedic and other surgical implants that repair and promote the natural healing of human bone and other human tissues. The Company uses natural tissues, metals and synthetics process to produce its products. The Company’s business primarily consists of six categories, such as spine, sports medicine, ortho fixation, bone graft substitutes and general orthopedic (BGS and general orthopedic), dental and surgical specialties. It processes donated human musculoskeletal and other tissue, including bone, cartilage, tendon, ligament, fascia lata, pericardium, sclera and dermal tissue, and bovine and porcine animal tissue in producing allograft and xenograft implants utilizing BIOCLEANSE, TUTOPLAST and CANCELLE SP sterilization processes, and manufactures metal and synthetic implants for distribution to hospitals and surgeons. The Company distributes its implants and services in approximately 50 states and in over 45 countries across the world.

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