In the rapidly evolving healthcare sector, STERIS plc (STE) and Insulet Corporation (PODD) stand out as key players in the medical devices industry. While STERIS focuses on infection prevention and sterilization technologies, Insulet innovates in insulin delivery systems for diabetes management. Their overlapping markets and distinct innovation strategies make this comparison insightful. Join me as we explore which company offers the most compelling investment opportunity today.
Table of contents
Companies Overview
I will begin the comparison between STERIS plc and Insulet Corporation by providing an overview of these two companies and their main differences.
STERIS plc Overview
STERIS plc operates globally in the healthcare sector, focusing on infection prevention and procedural products. Its diversified business includes healthcare equipment like sterilizers, surgical tables, and cleaning chemistries, as well as contract sterilization services for medical and pharmaceutical manufacturers. Founded in 1985 and based in Dublin, Ireland, STERIS serves hospitals and healthcare providers with a broad product and service portfolio.
Insulet Corporation Overview
Insulet Corporation specializes in insulin delivery systems for people with insulin-dependent diabetes. Its flagship product, the Omnipod System, is a tubeless, wearable insulin pump supported by a wireless personal diabetes manager. Incorporated in 2000 and headquartered in Acton, Massachusetts, Insulet markets its products primarily through distributors and pharmacy channels across the U.S., Canada, Europe, the Middle East, and Australia.
Key similarities and differences
Both STERIS and Insulet operate in the medical devices industry within healthcare but focus on distinct segments: STERIS offers a wide range of sterilization and procedural equipment, while Insulet concentrates on diabetes management technology. STERIS has a larger, more diversified product portfolio and a global service network, whereas Insulet specializes in a niche product line with geographic focus on insulin delivery. Their business models differ in scale and product focus despite sharing the healthcare industry context.
Income Statement Comparison
Below is a side-by-side comparison of key income statement metrics for STERIS plc and Insulet Corporation for their most recent fiscal years.
| Metric | STERIS plc (2025) | Insulet Corporation (2024) |
|---|---|---|
| Market Cap | 25.3B | 20.3B |
| Revenue | 5.46B | 2.07B |
| EBITDA | 1.36B | 424M |
| EBIT | 882M | 343M |
| Net Income | 615M | 418M |
| EPS | 6.24 | 5.97 |
| Fiscal Year | 2025 | 2024 |
Income Statement Interpretations
STERIS plc
STERIS plc showed steady revenue growth from 3.1B in 2021 to 5.46B in 2025, with net income rising from 397M to 615M. Gross and EBIT margins remained favorable, though net margin dipped slightly over the period. In 2025, revenue growth slowed to 6.24%, but net margin and EPS improved significantly, indicating enhanced profitability despite rising operating expenses.
Insulet Corporation
Insulet Corporation experienced robust revenue expansion from 904M in 2020 to 2.07B in 2024, with net income surging from 6.8M to 418M. Margins consistently improved, highlighted by a gross margin near 70% and a net margin above 20%. The latest year saw strong increases in revenue, EBIT, and net margin, reflecting accelerating growth and operational efficiency gains.
Which one has the stronger fundamentals?
Insulet reports stronger margin profiles, faster growth rates, and a fully favorable income statement evaluation, signaling robust fundamentals. STERIS also demonstrates solid growth and profitability, but with some margin pressure and mixed growth signals. Both are favorable, yet Insulet’s higher growth and margin improvements suggest comparatively stronger fundamentals based on income statement metrics.
Financial Ratios Comparison
The table below presents a clear comparison of key financial ratios for STERIS plc and Insulet Corporation based on their most recent fiscal year data.
| Ratios | STERIS plc (STE) FY 2025 | Insulet Corporation (PODD) FY 2024 |
|---|---|---|
| ROE | 9.31% | 34.52% |
| ROIC | 7.17% | 16.27% |
| P/E | 36.35 | 43.74 |
| P/B | 3.38 | 15.10 |
| Current Ratio | 1.96 | 3.54 |
| Quick Ratio | 1.39 | 2.73 |
| D/E (Debt-to-Equity) | 0.33 | 1.17 |
| Debt-to-Assets | 21.71% | 46.05% |
| Interest Coverage | 10.05 | 7.23 |
| Asset Turnover | 0.54 | 0.67 |
| Fixed Asset Turnover | 2.58 | 2.73 |
| Payout Ratio | 35.77% | 0% |
| Dividend Yield | 0.98% | 0% |
Interpretation of the Ratios
STERIS plc
STERIS shows a mix of strengths and weaknesses in its 2025 ratios. It has favorable net margin (11.26%), current and quick ratios indicating solid liquidity, and low debt levels with strong interest coverage, signaling financial stability. However, its return on equity (9.31%), price-to-earnings (36.35), and price-to-book (3.38) ratios are unfavorable, suggesting valuation concerns. The company pays dividends with a modest yield of 0.98%, but this is considered unfavorable, indicating limited income return.
Insulet Corporation
Insulet exhibits strong profitability with a high net margin (20.19%), return on equity (34.52%), and return on invested capital (16.27%), all marked favorable. Despite these, its valuation multiples are high, with price-to-earnings at 43.74 and price-to-book at 15.1, both unfavorable. The company does not pay dividends, likely due to reinvestment needs in its growth phase, as reflected by a zero dividend yield and ongoing funding for research and development.
Which one has the best ratios?
Comparing the two, STERIS presents a slightly favorable overall ratio profile with balanced liquidity and lower leverage, though it faces valuation and return concerns. Insulet’s ratios reflect robust profitability but carry higher valuation risk and no dividend payout, reflecting growth priorities. Both have trade-offs; STERIS is more stable, while Insulet shows stronger earnings yet higher risk.
Strategic Positioning
This section compares the strategic positioning of STERIS plc and Insulet Corporation, including Market position, Key segments, and Exposure to technological disruption:
STERIS plc
- Established leader in infection prevention facing moderate competition in medical devices sector
- Diverse segments: Healthcare, Applied Sterilization, Life Sciences, Dental; product and services revenue drivers
- Exposure to disruption limited due to broad medical sterilization technologies
Insulet Corporation
- Specialist in insulin delivery systems with strong niche presence and competitive pressure
- Focused on drug delivery and international Omnipod sales driving growth
- Potential disruption risk due to reliance on innovation in diabetes management devices
STERIS plc vs Insulet Corporation Positioning
STERIS has a diversified business model across multiple medical device segments, offering risk spreading but complexity. Insulet concentrates on insulin delivery innovation, yielding focused growth but higher segment-specific risk.
Which has the best competitive advantage?
Insulet shows a very favorable moat with ROIC well above WACC and strong growth, indicating durable competitive advantage. STERIS has a slightly unfavorable moat, shedding value despite improving profitability.
Stock Comparison
The stock price movements of STERIS plc (STE) and Insulet Corporation (PODD) over the past 12 months reveal contrasting dynamics, with STE showing steady acceleration and moderate gains, while PODD records a higher overall increase but recent deceleration and volatility.
Trend Analysis
STE’s stock price increased by 11.07% over the past year, indicating a bullish trend with acceleration. The price fluctuated between 199.51 and 266.28, supported by a standard deviation of 14.87.
PODD experienced a 51.32% rise over the same period, also bullish but with deceleration. Its price ranged from 164.31 to 348.43, accompanied by high volatility with a 54.06 standard deviation.
Comparing both, PODD delivered the highest market performance over the past year despite recent declines, while STE showed steadier growth and increasing buyer dominance.
Target Prices
Analysts present a confident target consensus for both STERIS plc and Insulet Corporation, indicating clear price expectations.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| STERIS plc | 265 | 245 | 256.67 |
| Insulet Corporation | 450 | 301 | 381.6 |
The target consensus for STERIS plc closely aligns with its current price of 256.82 USD, suggesting limited upside potential. In contrast, Insulet Corporation’s consensus target is significantly higher than its current price of 289.04 USD, indicating expectations of notable growth.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for STERIS plc and Insulet Corporation:
Rating Comparison
STERIS plc Rating
- Rating: B, considered very favorable by analysts.
- Discounted Cash Flow Score: 4, a favorable valuation score.
- ROE Score: 3, moderate efficiency in generating equity returns.
- ROA Score: 4, favorable asset utilization.
- Debt To Equity Score: 2, moderate financial risk.
- Overall Score: 3, moderate overall financial standing.
Insulet Corporation Rating
- Rating: B-, also considered very favorable by analysts.
- Discounted Cash Flow Score: 1, indicating a very unfavorable valuation.
- ROE Score: 4, favorable efficiency in generating equity returns.
- ROA Score: 4, favorable asset utilization.
- Debt To Equity Score: 3, moderate financial risk.
- Overall Score: 2, moderate overall financial standing.
Which one is the best rated?
Based strictly on the provided data, STERIS plc holds a higher overall score and a better discounted cash flow score, indicating a more favorable valuation and financial standing compared to Insulet Corporation, despite Insulet’s stronger ROE.
Scores Comparison
Here is a comparison of the financial scores for STERIS plc and Insulet Corporation:
STERIS plc Scores
- Altman Z-Score: 5.91, indicating a safe zone from bankruptcy risk.
- Piotroski Score: 8, reflecting very strong financial health.
Insulet Corporation Scores
- Altman Z-Score: 9.99, indicating a safe zone from bankruptcy risk.
- Piotroski Score: 7, reflecting strong financial health.
Which company has the best scores?
Based on the provided data, Insulet Corporation has a higher Altman Z-Score, suggesting lower bankruptcy risk, while STERIS plc has a slightly better Piotroski Score, indicating marginally stronger financial health. Both companies are in a safe zone overall.
Grades Comparison
The following is a comparison of recent grades for STERIS plc and Insulet Corporation from reputable grading companies:
STERIS plc Grades
Here are the recent grades assigned to STERIS plc by leading financial firms:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Morgan Stanley | Maintain | Overweight | 2025-08-08 |
| Keybanc | Maintain | Overweight | 2025-07-22 |
| Morgan Stanley | Upgrade | Overweight | 2025-07-15 |
| Morgan Stanley | Maintain | Equal Weight | 2025-05-19 |
| JMP Securities | Maintain | Market Outperform | 2025-05-16 |
| Stephens & Co. | Maintain | Overweight | 2025-05-15 |
| Morgan Stanley | Maintain | Equal Weight | 2025-05-12 |
| JMP Securities | Maintain | Market Outperform | 2025-04-10 |
| Needham | Maintain | Hold | 2025-04-07 |
| JMP Securities | Maintain | Market Outperform | 2025-02-06 |
Overall, STERIS plc shows a positive trend with multiple “Overweight” and “Market Outperform” ratings, indicating moderately bullish analyst sentiment.
Insulet Corporation Grades
Below are recent grades for Insulet Corporation from recognized grading companies:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Bernstein | Maintain | Outperform | 2026-01-09 |
| Truist Securities | Maintain | Buy | 2025-12-18 |
| Canaccord Genuity | Maintain | Buy | 2025-12-17 |
| Canaccord Genuity | Maintain | Buy | 2025-11-24 |
| Truist Securities | Maintain | Buy | 2025-11-21 |
| BTIG | Maintain | Buy | 2025-11-21 |
| RBC Capital | Maintain | Outperform | 2025-11-21 |
| UBS | Upgrade | Buy | 2025-11-19 |
| BTIG | Maintain | Buy | 2025-11-13 |
| UBS | Maintain | Neutral | 2025-11-07 |
Insulet Corporation’s grades predominantly include “Buy” and “Outperform” ratings, reflecting strong analyst confidence with some recent upgrades.
Which company has the best grades?
Both companies have a consensus “Buy” rating, but Insulet Corporation has a larger number of “Buy” and “Outperform” grades from multiple firms, suggesting stronger analyst endorsement. This could imply higher expected performance or confidence, potentially influencing investor interest differently than STERIS plc’s more mixed but positive outlook.
Strengths and Weaknesses
The table below summarizes the key strengths and weaknesses of STERIS plc (STE) and Insulet Corporation (PODD) based on recent financial and strategic data.
| Criterion | STERIS plc (STE) | Insulet Corporation (PODD) |
|---|---|---|
| Diversification | Balanced revenue from Products (2.87B) and Services (2.59B), providing stability | Heavy reliance on International Omnipod (2.03B) with minor Drug Delivery segment (39M), less diversified |
| Profitability | Moderate net margin (11.3%), neutral ROIC (7.17%), but ROIC below WACC indicating value destruction | Strong profitability with 20.2% net margin, high ROIC (16.3%) well above WACC, creating value |
| Innovation | Steady but limited innovation; ROIC growing slowly but still shedding value | Rapid innovation with very high ROIC growth (660%), signaling durable competitive advantage |
| Global presence | Solid global footprint with diverse product and service offerings | Expanding international presence mainly through Omnipod products |
| Market Share | Established player in medical sterilization and services | Leading position in insulin delivery devices with growing market share |
Key takeaways: STERIS offers diversification and stable revenue streams but faces challenges in value creation and innovation pace. Insulet demonstrates strong profitability and rapid growth fueled by innovation but has less diversification and higher financial leverage, which may increase risk.
Risk Analysis
Below is a comparison of key risk factors for STERIS plc (STE) and Insulet Corporation (PODD) based on the most recent data available.
| Metric | STERIS plc (STE) | Insulet Corporation (PODD) |
|---|---|---|
| Market Risk | Beta 1.03 (moderate) | Beta 1.4 (higher volatility) |
| Debt level | Low debt-to-equity 0.33 (favorable) | High debt-to-equity 1.17 (unfavorable) |
| Regulatory Risk | Moderate, healthcare sector compliance | Moderate, FDA approvals critical |
| Operational Risk | Diversified segments reduce risk | Reliant on Omnipod system success |
| Environmental Risk | Moderate, sterilization chemicals | Moderate, manufacturing footprint |
| Geopolitical Risk | Based in Ireland, global operations | US headquartered, international sales |
STE’s moderate market risk and low leverage contrast with PODD’s higher market volatility and significant debt. Regulatory risk is material for both due to medical device sector requirements. Operationally, STE benefits from segment diversification, whereas PODD depends heavily on its flagship product. Both face environmental and geopolitical uncertainties typical for global healthcare firms.
The most impactful risks are PODD’s high leverage and reliance on continuous innovation in insulin delivery, while STE’s financial stability and diversified operations provide a cushion against sector-specific shocks. Investors should monitor regulatory developments and debt servicing capabilities closely for both.
Which Stock to Choose?
STERIS plc (STE) shows steady income growth with a favorable gross margin of 44.01% and net margin at 11.26%. Financial ratios reveal a slightly favorable outlook, supported by low debt levels and strong liquidity. However, ROE and valuation multiples appear less attractive, while the company is shedding value overall despite a growing ROIC trend. Its rating is very favorable with moderate overall scores.
Insulet Corporation (PODD) exhibits robust income growth with a high net margin of 20.19% and strong profitability metrics. Ratios are neutral overall, with favorable returns but higher debt and valuation multiples. The company is clearly creating value with a very favorable moat rating and a strong upward ROIC trend. Its rating is also very favorable but with mixed scores on valuation and cash flow.
For investors, the choice might depend on risk tolerance and focus: STE could appear more stable with moderate valuation and consistent income growth, while PODD might signal higher growth potential paired with greater valuation and leverage risks. Growth-oriented investors may find PODD’s value creation and profitability appealing, whereas risk-averse investors might see STE’s financial stability and moderate ratios as more suitable.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of STERIS plc and Insulet Corporation to enhance your investment decisions:
