Stryker Corporation (NYSE: SYK) is one of 20 public companies in the “Medical Devices & Implants” industry, but how does it compare to its peers? We will compare Stryker Corporation to similar businesses based on the strength of its profitability, analyst recommendations, valuation, risk, earnings, institutional ownership and dividends.

Institutional and Insider Ownership

74.0% of Stryker Corporation shares are held by institutional investors. Comparatively, 43.1% of shares of all “Medical Devices & Implants” companies are held by institutional investors. 7.4% of Stryker Corporation shares are held by insiders. Comparatively, 9.6% 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 stock will outperform the market over the long term.

Earnings and Valuation

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

Gross Revenue NetIncome Price/Earnings Ratio
Stryker Corporation $11.33 billion $1.65 billion 33.37
Stryker Corporation Competitors $1.67 billion $207.58 million 83.70

Stryker Corporation has higher revenue and earnings than its peers. Stryker Corporation 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.

Volatility & Risk

Stryker Corporation has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, Stryker Corporation’s peers have a beta of 0.96, meaning that their average stock price is 4% less volatile than the S&P 500.

Dividends

Stryker Corporation pays an annual dividend of $1.70 per share and has a dividend yield of 1.1%. Stryker Corporation 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 1.2% and pay out 34.8% of their earnings in the form of a dividend. Stryker Corporation has increased its dividend for 6 consecutive years. Stryker Corporation lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a summary of recent ratings and price targets for Stryker Corporation and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stryker Corporation 2 8 11 0 2.43
Stryker Corporation Competitors 107 716 1007 10 2.50

Stryker Corporation presently has a consensus target price of $151.74, suggesting a potential downside of 2.84%. As a group, “Medical Devices & Implants” companies have a potential upside of 0.40%. Given Stryker Corporation’s peers stronger consensus rating and higher possible upside, analysts plainly believe Stryker Corporation has less favorable growth aspects than its peers.

Profitability

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

Net Margins Return on Equity Return on Assets
Stryker Corporation 14.67% 24.11% 11.44%
Stryker Corporation Competitors -109.83% -94.96% -28.86%

Summary

Stryker Corporation peers beat Stryker Corporation on 9 of the 15 factors compared.

About Stryker Corporation

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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