Reviewing Stryker Corporation (SYK) & Its Rivals

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

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 42.2% of their earnings in the form of a dividend. Stryker Corporation has increased its dividend for 6 consecutive years.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stryker Corporation 2 7 12 0 2.48
Stryker Corporation Competitors 109 727 1024 10 2.50

Stryker Corporation presently has a consensus price target of $152.37, suggesting a potential downside of 1.95%. As a group, “Medical Devices & Implants” companies have a potential upside of 39.67%. Given Stryker Corporation’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Stryker Corporation has less favorable growth aspects than its rivals.

Profitability

This table compares Stryker Corporation and its rivals’ 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 -97.44% -91.73% -29.33%

Volatility & Risk

Stryker Corporation has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Stryker Corporation’s rivals have a beta of 0.47, indicating that their average share price is 53% less volatile than the S&P 500.

Valuation and Earnings

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

Gross Revenue NetIncome Price/Earnings Ratio
Stryker Corporation $11.33 billion $1.65 billion 33.21
Stryker Corporation Competitors $1.67 billion $207.58 million 77.57

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

Insider and Institutional Ownership

74.2% of Stryker Corporation shares are owned by institutional investors. Comparatively, 57.4% of shares of all “Medical Devices & Implants” companies are owned by institutional investors. 7.4% of Stryker Corporation shares are owned by company insiders. Comparatively, 11.2% of shares of all “Medical Devices & Implants” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Stryker Corporation beats its rivals 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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