Exactech (NASDAQ: EXAC) and Hill-Rom Holdings (NYSE:HRC) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.
Profitability
This table compares Exactech and Hill-Rom Holdings’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Exactech | 0.30% | 7.39% | 5.98% |
| Hill-Rom Holdings | 4.27% | 19.99% | 5.73% |
Dividends
Hill-Rom Holdings pays an annual dividend of $0.72 per share and has a dividend yield of 1.0%. Exactech does not pay a dividend. Hill-Rom Holdings pays out 41.6% of its earnings in the form of a dividend. Exactech has raised its dividend for 6 consecutive years.
Valuation & Earnings
This table compares Exactech and Hill-Rom Holdings’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Exactech | $262.96 million | 1.65 | $43.51 million | $0.04 | 756.44 |
| Hill-Rom Holdings | $2.71 billion | 1.81 | $465.30 million | $1.73 | 42.94 |
Hill-Rom Holdings has higher revenue and earnings than Exactech. Hill-Rom Holdings is trading at a lower price-to-earnings ratio than Exactech, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Exactech has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, Hill-Rom Holdings has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Exactech and Hill-Rom Holdings, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Exactech | 0 | 0 | 1 | 0 | 3.00 |
| Hill-Rom Holdings | 0 | 1 | 4 | 0 | 2.80 |
Hill-Rom Holdings has a consensus target price of $87.80, indicating a potential upside of 18.19%. Given Hill-Rom Holdings’ higher possible upside, analysts plainly believe Hill-Rom Holdings is more favorable than Exactech.
Institutional & Insider Ownership
64.1% of Exactech shares are held by institutional investors. Comparatively, 84.3% of Hill-Rom Holdings shares are held by institutional investors. 28.3% of Exactech shares are held by company insiders. Comparatively, 2.2% of Hill-Rom Holdings shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
Hill-Rom Holdings beats Exactech on 11 of the 17 factors compared between the two stocks.
Exactech Company Profile
Exactech, Inc. develops, manufactures, markets, distributes and sells orthopedic implant devices, related surgical instrumentation and biologic services to hospitals and physicians. The Company’s segments include knee, hip, biologics and spine, extremity and other products. Its other products segment includes miscellaneous sales categories, such as bone cement, instrument rental fees, shipping charges and other product lines. The Company distributes joint replacement systems, including knee, hip, spine and extremity implant systems, and biologic products and services and bone cement materials used in orthopedic surgery and dental procedures. The Exactech Knee System provides solutions for partial, primary and revision total knee arthroplasty. Its hip solutions address the continuum of hip arthroplasty. It manufactures and distributes various products and services designed for the healing and regeneration of bone and soft tissue, including products, which contain human allograft.
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.
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