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

Insider and Institutional Ownership

74.2% of Stryker shares are held by institutional investors. Comparatively, 42.4% of shares of all “Medical Devices & Implants” companies are held by institutional investors. 7.4% of Stryker shares are held by insiders. Comparatively, 11.4% of shares of all “Medical Devices & Implants” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

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 39.8% of their earnings in the form of a dividend. Stryker has increased its dividend for 6 consecutive years.

Risk and Volatility

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

Profitability

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

Net Margins Return on Equity Return on Assets
Stryker 14.44% 17.02% 8.14%
Stryker Competitors -101.84% -93.34% -30.61%

Valuation and Earnings

This table compares Stryker and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Stryker $11.33 billion $1.65 billion 33.32
Stryker Competitors $1.67 billion $207.58 million 69.89

Stryker has higher revenue and earnings than its rivals. Stryker is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stryker 2 8 11 0 2.43
Stryker Competitors 109 725 1020 10 2.50

Stryker currently has a consensus target price of $151.74, suggesting a potential downside of 2.70%. As a group, “Medical Devices & Implants” companies have a potential upside of 6.04%. Given Stryker’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Stryker has less favorable growth aspects than its rivals.

Summary

Stryker rivals beat Stryker on 8 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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