Medtronic (MDT) vs. Its Competitors Financial Survey

Medtronic (NYSE: MDT) is one of 46 publicly-traded companies in the “Electromedical equipment” industry, but how does it weigh in compared to its peers? We will compare Medtronic to related companies based on the strength of its profitability, analyst recommendations, dividends, risk, earnings, institutional ownership and valuation.

Institutional & Insider Ownership

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81.2% of Medtronic shares are owned by institutional investors. Comparatively, 40.7% of shares of all “Electromedical equipment” companies are owned by institutional investors. 0.3% of Medtronic shares are owned by insiders. Comparatively, 20.1% of shares of all “Electromedical equipment” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Medtronic 9.44% 12.65% 6.58%
Medtronic Competitors -136.44% 33.70% -12.43%

Dividends

Medtronic pays an annual dividend of $1.84 per share and has a dividend yield of 2.3%. Medtronic pays out 40.0% of its earnings in the form of a dividend. As a group, “Electromedical equipment” companies pay a dividend yield of 1.9% and pay out 40.7% of their earnings in the form of a dividend. Medtronic has raised its dividend for 40 consecutive years. Medtronic is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Medtronic and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Medtronic $29.71 billion $4.03 billion 17.19
Medtronic Competitors $1.10 billion $121.87 million -38.34

Medtronic has higher revenue and earnings than its peers. Medtronic is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of current ratings and price targets for Medtronic and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Medtronic 0 6 15 0 2.71
Medtronic Competitors 145 434 967 26 2.56

Medtronic currently has a consensus target price of $91.03, suggesting a potential upside of 15.09%. As a group, “Electromedical equipment” companies have a potential upside of 21.49%. Given Medtronic’s peers higher probable upside, analysts clearly believe Medtronic has less favorable growth aspects than its peers.

Volatility & Risk

Medtronic has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Medtronic’s peers have a beta of 1.57, meaning that their average share price is 57% more volatile than the S&P 500.

Summary

Medtronic beats its peers on 10 of the 15 factors compared.

About Medtronic

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.

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