GenMark Diagnostics (GNMK) vs. Stryker (SYK) Head to Head Contrast

GenMark Diagnostics (NASDAQ: GNMK) and Stryker (NYSE:SYK) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.

Insider and Institutional Ownership

74.9% of Stryker shares are held by institutional investors. 7.5% of GenMark Diagnostics shares are held by company insiders. Comparatively, 7.4% of Stryker shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for GenMark Diagnostics and Stryker, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GenMark Diagnostics 0 1 5 0 2.83
Stryker 1 7 14 0 2.59

GenMark Diagnostics currently has a consensus price target of $10.60, indicating a potential upside of 50.78%. Stryker has a consensus price target of $170.32, indicating a potential downside of 1.99%. Given GenMark Diagnostics’ stronger consensus rating and higher possible upside, equities analysts clearly believe GenMark Diagnostics is more favorable than Stryker.

Earnings & Valuation

This table compares GenMark Diagnostics and Stryker’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GenMark Diagnostics $52.52 million 7.42 -$61.85 million ($1.21) -5.81
Stryker $12.44 billion 5.22 $1.02 billion $6.49 26.78

Stryker has higher revenue and earnings than GenMark Diagnostics. GenMark Diagnostics is trading at a lower price-to-earnings ratio than Stryker, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares GenMark Diagnostics and Stryker’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GenMark Diagnostics -97.90% -77.35% -46.77%
Stryker 8.00% 25.65% 11.68%

Volatility & Risk

GenMark Diagnostics has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Stryker has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500.

Dividends

Stryker pays an annual dividend of $1.88 per share and has a dividend yield of 1.1%. GenMark Diagnostics does not pay a dividend. Stryker pays out 29.0% of its earnings in the form of a dividend. Stryker has increased its dividend for 7 consecutive years.

Summary

Stryker beats GenMark Diagnostics on 11 of the 16 factors compared between the two stocks.

About GenMark Diagnostics

GenMark Diagnostics, Inc., a molecular diagnostics company, develops and commercializes molecular tests based on its proprietary eSensor electrochemical detection technology. It provides ePlex instrument and respiratory pathogen panel, which integrates automated nucleic acid extraction and amplification with its eSensor detection technology to enable operators using ePlex system to place patient sample directly into its test cartridge and obtain results. The company offers XT-8 instrument, and related diagnostic and research tests, as well as certain custom manufactured reagents that enable reference laboratories and hospitals to support a range of molecular tests with a workstation and disposable test cartridges. It also provides diagnostic tests for use with its XT-8 system that includes respiratory viral panel, cystic fibrosis genotyping test, thrombophilia risk test, a warfarin sensitivity test, and hepatitis C virus genotyping test and associated custom manufactured reagents, as well as 2C19 genotyping test. The company sells its products through direct sales and technically specialized service organization in the United States and Europe. GenMark Diagnostics, Inc. is headquartered in Carlsbad, California.

About Stryker

Stryker Corporation operates as a medical technology company. The company operates through three segments: Orthopaedics, MedSurg, and Neurotechnology and Spine. The Orthopaedics segment provides implants for use in hip and knee joint replacements, and trauma and extremities surgeries. The MedSurg segment offers surgical equipment and surgical navigation systems, endoscopic and communications systems, patient handling, emergency medical equipment and intensive care disposable products, reprocessed and remanufactured medical devices, and other medical devices for use in various medical specialties. The Neurotechnology and Spine segment provides neurotechnology products that include products used for minimally invasive endovascular techniques; products for brain and open skull based surgical procedures; orthobiologic and biosurgery products, such as synthetic bone grafts and vertebral augmentation products; and minimally invasive products for the treatment of acute ischemic and hemorrhagic stroke. It also provides spinal implant products comprising cervical, thoracolumbar, and interbody systems for use in spinal injury, deformity, and degenerative therapies. The company sells its products to doctors, hospitals, and other healthcare facilities through company-owned sales subsidiaries and branches, as well as third-party dealers and distributors in approximately 85 countries. Stryker Corporation was founded in 1941 and is headquartered in Kalamazoo, Michigan.

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