Contrasting Waters (NYSE:WAT) & Sensus Healthcare (NASDAQ:SRTS)
by Scott Moore · The Cerbat GemWaters (NYSE:WAT – Get Free Report) and Sensus Healthcare (NASDAQ:SRTS – 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 dividends, valuation, institutional ownership, earnings, analyst recommendations, risk and profitability.
Profitability
This table compares Waters and Sensus Healthcare’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Waters | 20.30% | 34.79% | 16.29% |
| Sensus Healthcare | -28.09% | -15.11% | -13.40% |
Institutional & Insider Ownership
94.0% of Waters shares are owned by institutional investors. Comparatively, 25.3% of Sensus Healthcare shares are owned by institutional investors. 0.3% of Waters shares are owned by insiders. Comparatively, 8.9% of Sensus Healthcare shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
Waters has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Sensus Healthcare has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Waters and Sensus Healthcare, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Waters | 0 | 8 | 9 | 3 | 2.75 |
| Sensus Healthcare | 1 | 1 | 4 | 0 | 2.50 |
Waters presently has a consensus target price of $387.53, suggesting a potential upside of 26.14%. Sensus Healthcare has a consensus target price of $6.88, suggesting a potential upside of 72.74%. Given Sensus Healthcare’s higher probable upside, analysts plainly believe Sensus Healthcare is more favorable than Waters.
Valuation and Earnings
This table compares Waters and Sensus Healthcare”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Waters | $3.17 billion | 9.53 | $642.63 million | $10.77 | 28.53 |
| Sensus Healthcare | $27.48 million | 2.38 | -$7.72 million | ($0.47) | -8.47 |
Waters has higher revenue and earnings than Sensus Healthcare. Sensus Healthcare is trading at a lower price-to-earnings ratio than Waters, indicating that it is currently the more affordable of the two stocks.
Summary
Waters beats Sensus Healthcare on 12 of the 15 factors compared between the two stocks.
About Waters
Waters Corporation provides analytical workflow solutions in Asia, the Americas, and Europe. It operates through two segments: Waters and TA. The company designs, manufactures, sells, and services high and ultra-performance liquid chromatography, as well as mass spectrometry (MS) technology systems and support products, including chromatography columns, other consumable products, and post-warranty service plans. It also designs, manufactures, sells, and services thermal analysis, rheometry, and calorimetry instruments; and develops and supplies software-based products that interface with its instruments, as well as other manufacturers' instruments. In addition, the company offers MS technology instruments are used in drug discovery and development comprising clinical trial testing, the analysis of proteins in disease processes, nutritional safety analysis, and environmental testing. Further, the company provides thermal analysis, rheometry, and calorimetry instruments for use in predicting the suitability and stability of fine chemicals, pharmaceuticals, water, polymers, metals, and viscous liquids for various industrial, consumer good, and healthcare products, as well as for life science research. Its products are used by clinical, pharmaceutical, biochemical, industrial, nutritional safety, environmental, academic, and governmental customers working in research and development, quality assurance, and other laboratory applications. The company was founded in 1958 and is headquartered in Milford, Massachusetts.
About Sensus Healthcare
Sensus Healthcare, Inc., a medical device company, manufactures and sells radiation therapy devices to healthcare providers worldwide. The company uses superficial radiation therapy, a low-energy X-ray technology in its portfolio of treatment devices. It offers SRT-100, a photon X-ray low energy superficial radiotherapy system that provides patients an alternative to surgery for treating non-melanoma skin cancers, including basal cell and squamous cell skin cancers, as well as other skin conditions, such as keloids; and SRT-100 Vision, which provides the user with a superficial radiation therapy-tailored treatment planning application that integrates an embedded high frequency ultrasound imaging module, volumetric tumor analysis, beam margins planning, and dosimetry parameters. The company also provides SRT-100 Plus; Sentinel service program, which offers its customers protection for their systems; and Transdermal Infusion system, a biophysical alternative to infuse high weight molecule modalities into the dermis for medical and aesthetic purposes without the use of needles. In addition, it sells disposable lead shielding replacements; and disposable radiation safety items, such as aprons and eye shields, ultrasound probe film, and disposable applicator tips to treat various sized lesions and various areas of the body. Further, the company distributes laser devices, which includes applications for hair removal, vascular lesions, acne treatment, skin toning, and skin rejuvenation, as well as epidermal pigment removal for spots, freckles, and tattoos. It markets its products primarily to private dermatology practices, and radiation oncologists in both private and hospital settings. Sensus Healthcare, Inc. was incorporated in 2010 and is headquartered in Boca Raton, Florida.