China Kanghui Holdings (NYSE: KH) and Stryker Corporation (NYSE:SYK) are both medical devices & implants companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Dividends

Stryker Corporation pays an annual dividend of $1.70 per share and has a dividend yield of 1.1%. China Kanghui Holdings does not pay a dividend. Stryker Corporation pays out 36.3% of its earnings in the form of a dividend. China Kanghui Holdings has raised its dividend for 6 consecutive years.

Institutional and Insider Ownership

74.2% of Stryker Corporation shares are held by institutional investors. 7.4% of Stryker Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares China Kanghui Holdings and Stryker Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Kanghui Holdings N/A N/A N/A
Stryker Corporation 14.67% 24.11% 11.44%

Valuation and Earnings

This table compares China Kanghui Holdings and Stryker Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
China Kanghui Holdings N/A N/A N/A $0.72 N/A
Stryker Corporation $11.33 billion 5.15 $1.65 billion $4.68 33.32

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

Analyst Ratings

This is a summary of current recommendations for China Kanghui Holdings and Stryker Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Kanghui Holdings 0 0 0 0 N/A
Stryker Corporation 2 8 11 0 2.43

Stryker Corporation has a consensus target price of $151.74, suggesting a potential downside of 2.70%.

Summary

Stryker Corporation beats China Kanghui Holdings on 9 of the 11 factors compared between the two stocks.

China Kanghui Holdings Company Profile

China Kanghui Holdings is a holding company and conducts all of its business through its two wholly owned subsidiaries in China, Changzhou Kanghui Medical Innovation Co., Ltd. (Changzhou Kanghui) and Beijing Libeier. The Company is a domestic developer, manufacturer and marketer of orthopedic implants in People’s Republic of China. The Company’s orthopedic implant brands are Kanghui and Libeier. It sells two lines of orthopedic implant products, trauma and spine. Its major trauma products, used in the surgical treatment of bone fractures, include a range of nails, plates and screws. Its major spine products, used in the surgical treatment of spine disorders, include screws, meshes, interbody cages and fixation systems. On July 31, 2008, we acquired 100% of the equity interests of Beijing Libeier. On July 31, 2009, the Company established Shanghai Zhikang Medical Devices Co., Ltd. (Shanghai Zhikang), which is wholly owned by Changzhou Kanghui.

Stryker Corporation Company Profile

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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