Critical Analysis: St Jude Medical (STJ) & Its Rivals

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

Insider and Institutional Ownership

82.7% of St Jude Medical shares are held by institutional investors. Comparatively, 54.8% of shares of all “Medical Devices & Implants” companies are held by institutional investors. 4.8% of St Jude Medical shares are held by company insiders. Comparatively, 11.9% of shares of all “Medical Devices & Implants” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares St Jude Medical and its peers’ 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 -100.97% -92.66% -30.28%

Analyst Ratings

This is a breakdown of recent ratings and target prices for St Jude Medical and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
St Jude Medical 0 0 0 0 N/A
St Jude Medical Competitors 111 728 1026 10 2.50

As a group, “Medical Devices & Implants” companies have a potential upside of 36.18%. Given St Jude Medical’s peers higher probable upside, analysts clearly believe St Jude Medical has less favorable growth aspects than its peers.

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 42.2% of their earnings in the form of a dividend. St Jude Medical has increased its dividend for 6 consecutive years.

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
St Jude Medical N/A N/A 35.45
St Jude Medical Competitors $1.67 billion $207.58 million 65.65

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

Summary

St Jude Medical beats its peers 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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