Financial Analysis: Smith & Nephew (NYSE:SNN) vs. ReWalk Robotics (NASDAQ:LFWD)

ReWalk Robotics (NASDAQ:LFWD) and Smith & Nephew (NYSE:SNN) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for ReWalk Robotics and Smith & Nephew, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ReWalk Robotics	0	0	3	0	3.00
Smith & Nephew	0	4	0	0	2.00

ReWalk Robotics currently has a consensus target price of $9.00, indicating a potential upside of 462.50%. Smith & Nephew has a consensus target price of $27.00, indicating a potential downside of 4.33%. Given ReWalk Robotics’ stronger consensus rating and higher possible upside, equities research analysts plainly believe ReWalk Robotics is more favorable than Smith & Nephew.

Risk & Volatility

ReWalk Robotics has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500. Comparatively, Smith & Nephew has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.

Insider and Institutional Ownership

26.8% of ReWalk Robotics shares are owned by institutional investors. Comparatively, 25.6% of Smith & Nephew shares are owned by institutional investors. 2.5% of ReWalk Robotics shares are owned by insiders. Comparatively, 1.0% of Smith & Nephew shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares ReWalk Robotics and Smith & Nephew’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ReWalk Robotics	-77.21%	-43.02%	-31.53%
Smith & Nephew	N/A	N/A	N/A

Earnings & Valuation

This table compares ReWalk Robotics and Smith & Nephew”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ReWalk Robotics	$25.66 million	0.66	-$22.13 million	($3.31)	-0.48
Smith & Nephew	$5.81 billion	2.12	$263.00 million	$2.16	13.07

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.

Summary

Smith & Nephew beats ReWalk Robotics on 8 of the 14 factors compared between the two stocks.

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.

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.