Smith & Nephew SNATS (NYSE: SNN) is one of 19 publicly-traded companies in the “Medical Devices & Implants” industry, but how does it contrast to its peers? We will compare Smith & Nephew SNATS to similar companies based on the strength of its dividends, earnings, risk, valuation, profitability, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

6.6% of Smith & Nephew SNATS shares are held by institutional investors. Comparatively, 54.8% of shares of all “Medical Devices & Implants” companies are held by institutional investors. 1.0% of Smith & Nephew SNATS shares are held by insiders. Comparatively, 11.9% of shares of all “Medical Devices & Implants” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Smith & Nephew SNATS and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Smith & Nephew SNATS $4.67 billion $784.00 million 18.20
Smith & Nephew SNATS Competitors $1.67 billion $207.58 million 80.89

Smith & Nephew SNATS has higher revenue and earnings than its peers. Smith & Nephew SNATS 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.

Dividends

Smith & Nephew SNATS pays an annual dividend of $0.61 per share and has a dividend yield of 1.7%. Smith & Nephew SNATS pays out 31.1% 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. Smith & Nephew SNATS has increased its dividend for 4 consecutive years. Smith & Nephew SNATS is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Risk and Volatility

Smith & Nephew SNATS has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500. Comparatively, Smith & Nephew SNATS’s peers have a beta of 0.30, indicating that their average stock price is 71% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Smith & Nephew SNATS and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Smith & Nephew SNATS 0 2 2 0 2.50
Smith & Nephew SNATS Competitors 110 728 1026 10 2.50

Smith & Nephew SNATS currently has a consensus price target of $42.00, indicating a potential upside of 17.71%. As a group, “Medical Devices & Implants” companies have a potential upside of 37.20%. Given Smith & Nephew SNATS’s peers higher probable upside, analysts plainly believe Smith & Nephew SNATS has less favorable growth aspects than its peers.

Profitability

This table compares Smith & Nephew SNATS and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Smith & Nephew SNATS N/A N/A N/A
Smith & Nephew SNATS Competitors -101.23% -92.70% -30.32%

Summary

Smith & Nephew SNATS beats its peers on 9 of the 14 factors compared.

Smith & Nephew SNATS Company Profile

Smith & Nephew plc is a medical technology company. The Company is engaged in developing, manufacturing, marketing and selling medical devices and services. Its products and services include Sports Medicine Joint Repair, Arthroscopic Enabling Technologies (AET), Trauma & Extremities, Other Surgical Businesses, Knee Implants, Hip Implants, Advanced Wound Care, Advanced Wound Bioactives and Advanced Wound Devices. The Sports Medicine Joint Repair franchise offers surgeons a range of instruments, technologies and implants necessary to perform minimally invasive surgery of the joints, including the repair of soft tissue injuries and degenerative conditions of the knee, hip and shoulder. The AET franchise offers an array of minimally invasive surgery-enabling systems and devices. The Trauma & Extremities franchise supports healthcare professionals with solutions used by surgeons to stabilize severe fractures, correct bone deformities, treat arthritis and heal soft tissue complications.

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