Reviewing Wright Medical Group (WMGI) & Its Competitors

Wright Medical Group (NASDAQ: WMGI) is one of 26 public companies in the “Surgical appliances & supplies” industry, but how does it compare to its rivals? We will compare Wright Medical Group to related businesses based on the strength of its risk, dividends, analyst recommendations, profitability, institutional ownership, valuation and earnings.

Insider and Institutional Ownership

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54.5% of shares of all “Surgical appliances & supplies” companies are owned by institutional investors. 9.3% of Wright Medical Group shares are owned by company insiders. Comparatively, 11.2% of shares of all “Surgical appliances & supplies” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Wright Medical Group has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, Wright Medical Group’s rivals have a beta of 0.84, suggesting that their average stock price is 16% less volatile than the S&P 500.

Valuation & Earnings

This table compares Wright Medical Group and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Wright Medical Group $744.99 million -$202.59 million -89.23
Wright Medical Group Competitors $1.33 billion $194.26 million 22.38

Wright Medical Group’s rivals have higher revenue and earnings than Wright Medical Group. Wright Medical Group 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.

Profitability

This table compares Wright Medical Group and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wright Medical Group -27.19% -3.78% -1.01%
Wright Medical Group Competitors -295.29% -52.73% -18.42%

Analyst Ratings

This is a summary of current recommendations for Wright Medical Group and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wright Medical Group 0 3 7 0 2.70
Wright Medical Group Competitors 126 702 1249 52 2.58

Wright Medical Group currently has a consensus target price of $29.38, suggesting a potential upside of 49.64%. As a group, “Surgical appliances & supplies” companies have a potential upside of 4.19%. Given Wright Medical Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe Wright Medical Group is more favorable than its rivals.

Summary

Wright Medical Group rivals beat Wright Medical Group on 7 of the 13 factors compared.

Wright Medical Group Company Profile

Wright Medical Group, Inc. is a global specialty orthopaedic company. The Company through Wright Medical Technology, Inc. (WMT) and other subsidiaries provides extremity and biologic solutions that enable clinicians to alleviate pain and restore the patients’ lifestyles. The Company operates through three segments: U.S., International and BioMimetic. The Company’s business includes products that are used in foot and ankle repair, upper extremity products and biologics products, which are used to replace damaged or diseased bone, to stimulate bone growth and to provide other biological solutions for surgeons and patients. The Company’s products include extremity hardware, foot and ankle hardware, upper extremity hardware and biologics.

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