Smith & Nephew (NYSE:SNN – Get Free Report) and ReWalk Robotics (NASDAQ:LFWD – Get Free Report) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.
Volatility and Risk
Smith & Nephew has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, ReWalk Robotics has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Smith & Nephew and ReWalk Robotics, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Smith & Nephew | 0 | 4 | 0 | 0 | 2.00 |
ReWalk Robotics | 0 | 0 | 3 | 0 | 3.00 |
Insider and Institutional Ownership
25.6% of Smith & Nephew shares are owned by institutional investors. Comparatively, 26.8% of ReWalk Robotics shares are owned by institutional investors. 1.0% of Smith & Nephew shares are owned by insiders. Comparatively, 2.5% of ReWalk Robotics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Smith & Nephew and ReWalk Robotics”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Smith & Nephew | $5.81 billion | 2.15 | $263.00 million | $2.16 | 13.23 |
ReWalk Robotics | $25.66 million | 0.63 | -$22.13 million | ($3.31) | -0.46 |
Smith & Nephew has higher revenue and earnings than ReWalk Robotics. ReWalk Robotics is trading at a lower price-to-earnings ratio than Smith & Nephew, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Smith & Nephew and ReWalk Robotics’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Smith & Nephew | N/A | N/A | N/A |
ReWalk Robotics | -77.21% | -43.02% | -31.53% |
Summary
Smith & Nephew beats ReWalk Robotics on 8 of the 14 factors compared between the two stocks.
About Smith & Nephew
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 ReWalk Robotics
ReWalk Robotics Ltd., a medical device company, designs, develops, and commercializes technologies that enable mobility and wellness in rehabilitation and daily life for individuals with physical and neurological conditions in the United States, Europe, the Asia-Pacific, and internationally. It offers ReWalk personal exoskeleton and rehabilitation exoskeleton devices; ReStore, a soft exo-suit intended for use in the rehabilitation of individuals with lower limb disability due to stroke; AlterG Anti-Gravity System for use in physical and neurological rehabilitation and athletic training; MyoCycle devices; and ReBoot, a personal soft exo-suit for home and community use by individuals post-stroke. The company markets and sells its products directly to institutions and individuals, as well as through third-party distributors. The company was formerly known as Argo Medical Technologies Ltd. ReWalk Robotics Ltd. was incorporated in 2001 and is headquartered in Yokneam Illit, Israel.
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