Critical Comparison: Stryker Corporation (SYK) versus Glaukos Corporation (GKOS)
Stryker Corporation (NYSE: SYK) and Glaukos Corporation (NYSE:GKOS) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.
Stryker Corporation pays an annual dividend of $1.70 per share and has a dividend yield of 1.2%. Glaukos Corporation does not pay a dividend. Stryker Corporation pays out 37.9% of its earnings in the form of a dividend. Stryker Corporation has raised its dividend for 6 consecutive years.
Valuation and Earnings
This table compares Stryker Corporation and Glaukos Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Stryker Corporation||$11.96 billion||4.51||$3.29 billion||$4.48||32.21|
|Glaukos Corporation||$139.94 million||9.22||$8.15 million||($0.05)||-749.00|
Stryker Corporation has higher revenue and earnings than Glaukos Corporation. Glaukos Corporation is trading at a lower price-to-earnings ratio than Stryker Corporation, indicating that it is currently the more affordable of the two stocks.
This table compares Stryker Corporation and Glaukos Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
73.8% of Stryker Corporation shares are owned by institutional investors. Comparatively, 90.1% of Glaukos Corporation shares are owned by institutional investors. 7.4% of Stryker Corporation shares are owned by insiders. Comparatively, 16.4% of Glaukos Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This is a summary of recent ratings and recommmendations for Stryker Corporation and Glaukos Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Stryker Corporation currently has a consensus target price of $143.38, suggesting a potential downside of 0.63%. Glaukos Corporation has a consensus target price of $54.60, suggesting a potential upside of 45.79%. Given Glaukos Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe Glaukos Corporation is more favorable than Stryker Corporation.
Risk and Volatility
Stryker Corporation has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, Glaukos Corporation has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.
Stryker Corporation beats Glaukos Corporation on 9 of the 17 factors compared between the two stocks.
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.
Glaukos Corporation Company Profile
Glaukos Corporation is an ophthalmic medical technology company. The Company focuses on the development and commercialization of products and procedures for the treatment of glaucoma. It offers iStent, a micro-invasive glaucoma surgery (MIGS) device. The iStent is a micro-bypass stent inserted through the small corneal incision made during cataract surgery and placed into Schlemm’s canal, a circular channel in the eye that collects aqueous humor and delivers it back into the bloodstream. It is developing three additional pipeline products: the iStent Inject, the iStent Supra and iDose. The iStent Inject includes two stents pre-loaded in an auto-injection inserter. The iStent Supra is designed to access an alternative drainage space within the eye. iDose is a drug delivery system that is designed to be implanted in the eye to continuously deliver therapeutic levels of medication for extended periods of time to lower intraocular pressure in glaucoma patients.
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