Stryker (SYK) versus The Competition Critical Analysis

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

Earnings & Valuation

This table compares Stryker and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Stryker $11.33 billion $1.65 billion 32.56
Stryker Competitors $1.67 billion $207.58 million 69.77

Stryker has higher revenue and earnings than its competitors. Stryker 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.

Profitability

This table compares Stryker and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stryker 14.67% 24.11% 11.44%
Stryker Competitors -100.97% -92.66% -30.28%

Insider & Institutional Ownership

75.0% of Stryker shares are owned by institutional investors. Comparatively, 54.8% of shares of all “Medical Devices & Implants” companies are owned by institutional investors. 7.4% of Stryker shares are owned by company insiders. Comparatively, 11.9% of shares of all “Medical Devices & Implants” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Stryker has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, Stryker’s competitors have a beta of 0.21, indicating that their average stock price is 79% less volatile than the S&P 500.

Dividends

Stryker pays an annual dividend of $1.70 per share and has a dividend yield of 1.1%. Stryker pays out 36.3% 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. Stryker has increased its dividend for 6 consecutive years.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Stryker and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stryker 2 7 12 0 2.48
Stryker Competitors 111 728 1026 10 2.50

Stryker currently has a consensus price target of $152.37, indicating a potential upside of 0.01%. As a group, “Medical Devices & Implants” companies have a potential upside of 40.07%. Given Stryker’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Stryker has less favorable growth aspects than its competitors.

Summary

Stryker beats its competitors on 9 of the 15 factors compared.

About Stryker

Stryker Corporation is a medical technology company. The Company offers a range of medical technologies, including orthopedic, medical and surgical, and neurotechnology and spine products. The Company’s segments include Orthopaedics; MedSurg; Neurotechnology and Spine, and Corporate and Other. The Orthopaedics segment includes reconstructive (hip and knee) and trauma implant systems and other related products. The MedSurg segment includes surgical equipment and surgical navigation systems; endoscopic and communications systems; patient handling, emergency medical equipment, intensive care disposable products; reprocessed and remanufactured medical devices, and other related products. The Neurotechnology and Spine segment includes neurovascular products, spinal implant systems and other related products. The Company’s products include implants, which are used in joint replacement and trauma surgeries, and other products that are used in a range of medical specialties.

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