Invacare Corporation (NYSE: IVC) and ICU Medical (NASDAQ:ICUI) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.

Dividends

Invacare Corporation pays an annual dividend of $0.05 per share and has a dividend yield of 0.3%. ICU Medical does not pay a dividend. Invacare Corporation pays out -2.6% of its earnings in the form of a dividend.

Institutional & Insider Ownership

78.1% of ICU Medical shares are held by institutional investors. 2.6% of Invacare Corporation shares are held by company insiders. Comparatively, 15.9% of ICU Medical shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Invacare Corporation and ICU Medical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Invacare Corporation -6.42% -12.79% -5.88%
ICU Medical 6.10% 7.56% 6.20%

Analyst Ratings

This is a breakdown of recent recommendations for Invacare Corporation and ICU Medical, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Invacare Corporation 0 1 2 0 2.67
ICU Medical 0 2 1 0 2.33

Invacare Corporation currently has a consensus target price of $14.50, indicating a potential downside of 1.36%. Given Invacare Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Invacare Corporation is more favorable than ICU Medical.

Risk and Volatility

Invacare Corporation has a beta of 2.36, suggesting that its share price is 136% more volatile than the S&P 500. Comparatively, ICU Medical has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500.

Earnings and Valuation

This table compares Invacare Corporation and ICU Medical’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Invacare Corporation $980.12 million 0.49 -$13.64 million ($1.93) -7.62
ICU Medical $772.05 million 4.48 $92.48 million $2.62 66.57

ICU Medical has higher revenue, but lower earnings than Invacare Corporation. Invacare Corporation is trading at a lower price-to-earnings ratio than ICU Medical, indicating that it is currently the more affordable of the two stocks.

Summary

ICU Medical beats Invacare Corporation on 8 of the 15 factors compared between the two stocks.

About Invacare Corporation

Invacare Corporation is a manufacturer and distributor for medical equipment used in non-acute care settings. The Company’s geographical segments are Europe; North America, which includes North America/Home Medical Equipment (North America/HME) and Institutional Products Group (IPG) segments, and Asia/Pacific. The Company manufactures and distributes three product categories: mobility and seating, lifestyle and respiratory therapy. It provides medical device solutions for congenital (cerebral palsy, muscular dystrophy and spina bifida), acquired (stroke, spinal cord injury, traumatic brain injury, post-acute recovery and pressure ulcers) and degenerative (amyotrophic lateral sclerosis, multiple sclerosis, chronic obstructive pulmonary disease (COPD), elderly and bariatric) ailments. The Company sells its products to home medical equipment providers with retail and e-commerce channels, residential living operators, distributors and government health services.

About ICU Medical

ICU Medical, Inc. is engaged in the development, manufacture and sales of medical devices used in infusion therapy, oncology and critical care applications. The Company’s product line includes needlefree connection devices, custom infusion sets, closed system transfer devices (CSTD) for the handling of hazardous drugs, advanced sensor catheters, needlefree closed blood sampling systems, disposable pressure transducer systems and hemodynamic monitoring systems. The primary critical care products it manufactures are Hemodynamic Monitoring Systems, SafeSet Closed Blood Sampling and Conservation System, Transpac Consumable Blood Pressure Transducers and Other Critical Care Products. The primary oncology products it manufactures are ChemoLock Needlefree CSTD, ChemoClave Needlefree CSTD and Diana Hazardous Drug Compounding System. As of December 31, 2016, its products were used in acute care hospitals and ambulatory clinics in more than 65 countries throughout the world.

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