Analyzing St Jude Medical (STJ) and Its Rivals

St Jude Medical (NYSE: STJ) is one of 19 public companies in the “Medical Devices & Implants” industry, but how does it contrast to its competitors? We will compare St Jude Medical to similar businesses based on the strength of its valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.

Dividends

St Jude Medical pays an annual dividend of $1.24 per share and has a dividend yield of 1.5%. St Jude Medical pays out 54.4% of its earnings in the form of a dividend. As a group, “Medical Devices & Implants” companies pay a dividend yield of 1.3% and pay out 39.8% of their earnings in the form of a dividend. St Jude Medical has increased its dividend for 6 consecutive years.

Earnings and Valuation

This table compares St Jude Medical and its competitors gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
St Jude Medical N/A N/A 35.45
St Jude Medical Competitors $1.67 billion $207.58 million 61.21

St Jude Medical’s competitors have higher revenue and earnings than St Jude Medical. St Jude Medical is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of recent ratings for St Jude Medical and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
St Jude Medical 0 0 0 0 N/A
St Jude Medical Competitors 109 727 1024 10 2.50

As a group, “Medical Devices & Implants” companies have a potential upside of 35.64%. Given St Jude Medical’s competitors higher possible upside, analysts plainly believe St Jude Medical has less favorable growth aspects than its competitors.

Profitability

This table compares St Jude Medical and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
St Jude Medical 14.14% 19.40% 6.75%
St Jude Medical Competitors -97.44% -91.73% -29.33%

Institutional & Insider Ownership

82.7% of St Jude Medical shares are held by institutional investors. Comparatively, 57.4% of shares of all “Medical Devices & Implants” companies are held by institutional investors. 4.8% of St Jude Medical shares are held by insiders. Comparatively, 11.2% of shares of all “Medical Devices & Implants” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

St Jude Medical beats its competitors on 5 of the 9 factors compared.

About St Jude Medical

St. Jude Medical, Inc. is focused on the development, manufacture and distribution of cardiovascular medical devices for the global cardiac rhythm management, cardiovascular and atrial fibrillation therapy areas, and interventional pain therapy and neurostimulation devices for the management of chronic pain and movement disorders. The Company’s product categories include tachycardia implantable cardioverter defibrillator systems; atrial fibrillation products (electrophysiology introducers and catheters, advanced cardiac mapping, navigation and recording systems and ablation systems); bradycardia pacemaker systems; vascular products (vascular closure products, pressure measurement guidewires, optical coherence tomography imaging products, vascular plugs, heart failure monitoring devices and other vascular accessories); structural heart products (heart valve replacement and repair products and structural heart defect devices); neuromodulation products, and Thoratec products.

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