Reviewing Hill-Rom Holdings (HRC) and MiMedx Group (MDXG)

Hill-Rom Holdings (NYSE: HRC) and MiMedx Group (NASDAQ:MDXG) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.

Profitability

This table compares Hill-Rom Holdings and MiMedx Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hill-Rom Holdings 4.27% 19.99% 5.73%
MiMedx Group 7.48% 15.95% 11.13%

Insider & Institutional Ownership

82.3% of Hill-Rom Holdings shares are held by institutional investors. Comparatively, 60.4% of MiMedx Group shares are held by institutional investors. 2.2% of Hill-Rom Holdings shares are held by company insiders. Comparatively, 12.4% of MiMedx Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Hill-Rom Holdings and MiMedx Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hill-Rom Holdings 0 1 4 0 2.80
MiMedx Group 1 0 3 1 2.80

Hill-Rom Holdings presently has a consensus target price of $87.80, indicating a potential upside of 20.62%. MiMedx Group has a consensus target price of $16.00, indicating a potential upside of 29.66%. Given MiMedx Group’s higher probable upside, analysts plainly believe MiMedx Group is more favorable than Hill-Rom Holdings.

Dividends

Hill-Rom Holdings pays an annual dividend of $0.72 per share and has a dividend yield of 1.0%. MiMedx Group does not pay a dividend. Hill-Rom Holdings pays out 41.6% of its earnings in the form of a dividend. Hill-Rom Holdings has increased its dividend for 6 consecutive years.

Valuation & Earnings

This table compares Hill-Rom Holdings and MiMedx Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hill-Rom Holdings $2.71 billion 1.77 $465.30 million $1.73 42.08
MiMedx Group $283.32 million 4.90 $32.97 million $0.19 64.95

Hill-Rom Holdings has higher revenue and earnings than MiMedx Group. Hill-Rom Holdings is trading at a lower price-to-earnings ratio than MiMedx Group, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Hill-Rom Holdings has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, MiMedx Group has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.

Summary

Hill-Rom Holdings beats MiMedx Group on 9 of the 17 factors compared between the two stocks.

Hill-Rom Holdings Company Profile

Hill-Rom Holdings, Inc. is a global medical technology company. The Company operates through four segments: North America Patient Support Systems, International Patient Support Systems, Front Line Care and Surgical Solutions. The Company’s products and services include Patient Support Systems, Front Line Care and Surgical Solutions. The Company sells and rents its specialty frames and surfaces, and mobility solutions, as well as its clinical workflow solutions, in the United States and Canada through its North America Patient Support Systems segment, and in regions outside of the United States and Canada through its International Patient Support Systems segment. Its Front Line Care segment globally sells and rents respiratory care products, and sells medical diagnostic equipment and a diversified portfolio of devices that assess, diagnose, treat and manage a range of illnesses and diseases. Under its Surgical Solutions segment, the Company sells its surgical products globally.

MiMedx Group Company Profile

MiMedx Group, Inc. is an integrated developer, processor and marketer of regenerative biomaterial products and bioimplants human placental tissue, skin and bone. The Company’s Regenerative Biomaterials segment includes the design, manufacture, and marketing of products and tissue processing services for the Wound Care, Surgical, Sports Medicine, Ophthalmic and Dental market categories. Its biomaterial platform technologies include AmnioFix, EpiFix, OrthoFlo, Physio, AlloBurn, and CollaFix. AmnioFix and EpiFix are its tissue technologies processed from human amniotic membrane derived from donated placentas. OrthoFlo is amniotic fluid-derived allograft for homologous use. Physio is a bone grafting material consists of bone tissue with no added carrier. CollaFix, its new brand, is its collagen fiber technology designed to mimic the natural composition, structure and mechanical properties of musculoskeletal tissues in order to augment their repair.

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