Medtronic PLC (MDT) versus Arch Therapeutics (ARTH) Financial Analysis
Medtronic PLC (NYSE: MDT) and Arch Therapeutics (NASDAQ:ARTH) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.
Insider & Institutional Ownership
80.5% of Medtronic PLC shares are held by institutional investors. 0.3% of Medtronic PLC shares are held 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.
This table compares Medtronic PLC and Arch Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations and price targets for Medtronic PLC and Arch Therapeutics, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Medtronic PLC presently has a consensus price target of $88.82, suggesting a potential upside of 8.28%. Arch Therapeutics has a consensus price target of $2.83, suggesting a potential upside of 254.17%. Given Arch Therapeutics’ stronger consensus rating and higher possible upside, analysts plainly believe Arch Therapeutics is more favorable than Medtronic PLC.
Medtronic PLC pays an annual dividend of $1.84 per share and has a dividend yield of 2.2%. Arch Therapeutics does not pay a dividend. Medtronic PLC pays out 62.0% of its earnings in the form of a dividend. Medtronic PLC has increased its dividend for 39 consecutive years.
Valuation and Earnings
This table compares Medtronic PLC and Arch Therapeutics’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Medtronic PLC||$29.93 billion||3.71||$9.23 billion||$2.97||27.62|
Medtronic PLC has higher revenue and earnings than Arch Therapeutics.
Medtronic PLC beats Arch Therapeutics on 9 of the 12 factors compared between the two stocks.
Medtronic PLC Company Profile
Medtronic Public Limited Company (Medtronic) is a medical technology and services company. The Company develops, manufactures and markets its medical devices and technologies to hospitals, physicians, clinicians and patients in approximately 160 countries. The Company operates in four segments: Cardiac and Vascular Group, Minimally Invasive Technologies Group, Restorative Therapies Group and Diabetes Group. The Cardiac and Vascular Group segment includes Cardiac Rhythm & Heart Failure, Coronary & Structural Heart and Aortic & Peripheral Vascula. Its Minimally Invasive Technologies Group segment includes Surgical Solutions and Patient Monitoring and Recovery. Its Restorative Therapies Group segment includes Spine, Neuromodulation, Surgical Technologies and Neurovascular. Its Diabetes Group segment includes Intensive Insulin Management, Non-Intensive Diabetes Therapies and Diabetes Services & Solutions. The Company’s subsidiaries include Medtronic, Inc. and HeartWare International, Inc.
Arch Therapeutics Company Profile
Arch Therapeutics, Inc. is a development-stage company. The Company operates as a biotechnology company. The Company focuses on developing products to stop bleeding (hemostasis) and control leaking (sealant) during surgery and trauma care. The Company’s technology is based on a self-assembling peptide that creates a physical, mechanical barrier, which could be applied to seal organs or wounds that are leaking blood and other fluids. The Company’s primary product candidates, collectively known as the AC5 Devices (AC5), are designed to achieve hemostasis in surgical procedures. The Company’s product candidates rely on its self-assembling peptide technology and are designed to achieve hemostasis in skin wounds, and minimally invasive and open surgical procedures. The Company focuses on developing other product candidates based on its technology platform for use in a range of indications. As of September 30, 2016, the Company had not generated any revenues.
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