Analyzing Wright Medical Group (WMGI) and Its Rivals

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

Profitability

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This table compares Wright Medical Group and its peers’ 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 -295.51% -52.71% -18.40%

Volatility & Risk

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

Insider and Institutional Ownership

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, 10.9% of shares of all “Surgical appliances & supplies” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Wright Medical Group and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Wright Medical Group $744.99 million -$202.59 million -89.45
Wright Medical Group Competitors $1.33 billion $194.17 million 23.49

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

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wright Medical Group 0 2 7 0 2.78
Wright Medical Group Competitors 124 712 1263 53 2.58

Wright Medical Group presently has a consensus price target of $29.38, indicating a potential upside of 49.26%. As a group, “Surgical appliances & supplies” companies have a potential downside of 1.23%. Given Wright Medical Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Wright Medical Group is more favorable than its peers.

Summary

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

About Wright Medical Group

Wright Medical Group N.V., a medical device company, designs, manufactures, markets, and sells extremities and biologics products. The company offers joint implants and bone fixation devices for the shoulder, elbow, wrist, hand, foot, and ankle; and biologics products that are used for supporting the treatment of damaged or diseased bones, tendons, and soft tissues, as well as to stimulate bone growth. It also provides sports medicines and other products to mechanically repair tissue-to-tissue or tissue-to-bone injuries, as well as other ancillary products. The company primarily offers its products to orthopaedic, trauma, and podiatric surgeons. It markets and sells its products through direct sales representatives and independent sales agencies in the United States, as well as direct sales offices and distributors in approximately 50 countries. The company was founded in 1999 and is headquartered in Amsterdam, the Netherlands.

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