Cantel Medical (NYSE:CMD) versus Valeritas (NYSE:VLRX) Critical Comparison

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Cantel Medical (NYSE:CMD) and Valeritas (NASDAQ:VLRX) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

Dividends

Cantel Medical pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. Valeritas does not pay a dividend. Cantel Medical pays out 8.0% of its earnings in the form of a dividend.

Profitability

This table compares Cantel Medical and Valeritas’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cantel Medical 6.95% 15.52% 9.73%
Valeritas -183.53% -1,757.04% -87.00%

Analyst Recommendations

This is a breakdown of recent ratings for Cantel Medical and Valeritas, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cantel Medical 0 1 1 0 2.50
Valeritas 0 0 3 0 3.00

Cantel Medical currently has a consensus target price of $114.00, indicating a potential upside of 51.35%. Valeritas has a consensus target price of $2.17, indicating a potential downside of 27.78%. Given Cantel Medical’s higher probable upside, analysts plainly believe Cantel Medical is more favorable than Valeritas.

Institutional and Insider Ownership

86.7% of Cantel Medical shares are owned by institutional investors. 11.7% of Cantel Medical shares are owned by company insiders. Comparatively, 1.0% of Valeritas shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

Cantel Medical has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, Valeritas has a beta of 2.24, suggesting that its stock price is 124% more volatile than the S&P 500.

Valuation & Earnings

This table compares Cantel Medical and Valeritas’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cantel Medical $871.92 million 3.61 $91.04 million $2.51 30.01
Valeritas $26.40 million 0.60 -$45.93 million ($34.20) -0.09

Cantel Medical has higher revenue and earnings than Valeritas. Valeritas is trading at a lower price-to-earnings ratio than Cantel Medical, indicating that it is currently the more affordable of the two stocks.

Summary

Cantel Medical beats Valeritas on 12 of the 16 factors compared between the two stocks.

Cantel Medical Company Profile

Cantel Medical Corp. provides infection prevention and control products and services for the healthcare market. The company's Endoscopy segment offers automated endoscope reprocessing systems; infectants and sterilants; detergents; leak testing and manual cleaning products; storage cabinets, transport systems, and mobile medical carts; manual cleaning products; endoscope process tracking products; other consumables, accessories, and supplies for use in disinfect rigid endoscopes, flexible endoscopes, and other instrumentation; and technical maintenance services. Its Water Purification and Filtration segment provides dialysis water purification and bicarbonate mixing systems; hollow fiber filters, and other filtration and separation products; liquid disinfectants and cold sterilization products; dry fog products; room temperature sterilization equipment and services; and clean-room certification and decontamination services for the dialysis and other healthcare, research laboratory and pharmaceutical, food and beverage, and commercial industrial customers. The company's Healthcare Disposables segment offers biological indicators, chemical integrators, sterilization pouches, towels, bibs, tray liners, sponges, nitrous oxide/oxygen sedation equipment and related single-use disposable nasal masks, face masks, and shields. It also provides hand sanitizers, germicidal wipes, disinfectants, surface disinfectants, waterline treatment products, amalgam separators, saliva ejectors, evacuator tips, plastic cups, prophy angles, and prophy paste. The company's Dialysis segment provides hemodialysis concentrates and other ancillary supplies; medical device reprocessing systems; and sterilants and disinfectants. The company sells its products through its direct distribution network in the United States; and directly or under third-party distribution agreements internationally. Cantel Medical Corp. was founded in 1963 and is headquartered in Little Falls, New Jersey.

Valeritas Company Profile

Valeritas Holdings, Inc., a commercial-stage medical technology company, focuses on the development and commercialization of technologies to treat patients with Type 2 diabetes in the United States. The company offers V-Go, a wearable insulin delivery device for basal-bolus therapy. It also develops V-Go Prefill that is in the design-development stage for eliminating the device-filling process and the need for EZ fill refrigeration for patients with Type 2 diabetes; and V-Go SIM for real-time tracking information of basal and bolus dosing utilization. The company sells V-Go to third-party wholesalers and medical supply distributors. Valeritas Holdings, Inc. was founded in 2006 and is headquartered in Bridgewater, New Jersey.

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