Critical Contrast: Getinge (GNGBY) and Its Rivals

Getinge (OTCMKTS:GNGBY) is one of 233 public companies in the “Healthcare Providers & Services” industry, but how does it weigh in compared to its competitors? We will compare Getinge to related businesses based on the strength of its institutional ownership, risk, valuation, dividends, analyst recommendations, profitability and earnings.

Risk & Volatility

Getinge has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Getinge’s competitors have a beta of 0.98, suggesting that their average share price is 2% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Getinge and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Getinge	0	4	0	0	2.00
Getinge Competitors	1861	7721	13336	820	2.55

As a group, “Healthcare Providers & Services” companies have a potential upside of 13.51%. Given Getinge’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Getinge has less favorable growth aspects than its competitors.

Profitability

This table compares Getinge and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Getinge	8.20%	11.55%	6.15%
Getinge Competitors	-8.08%	-137.95%	-1.47%

Earnings & Valuation

This table compares Getinge and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Getinge	$3.57 billion	$230.87 million	25.62
Getinge Competitors	$19.16 billion	$301.67 million	7.60

Getinge’s competitors have higher revenue and earnings than Getinge. Getinge is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

56.7% of shares of all “Healthcare Providers & Services” companies are held by institutional investors. 15.0% of shares of all “Healthcare Providers & Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Getinge pays an annual dividend of $0.29 per share and has a dividend yield of 1.0%. Getinge pays out 26.4% of its earnings in the form of a dividend. As a group, “Healthcare Providers & Services” companies pay a dividend yield of 1.4% and pay out 25.9% of their earnings in the form of a dividend. Getinge lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Getinge competitors beat Getinge on 11 of the 15 factors compared.

About Getinge

Getinge AB (publ) provides products and solutions for operating rooms, intensive-care units, and sterilization departments. The company operates through Acute Care Therapies, Life Science, and Surgical Workflows segments. It offers extracorporeal membrane oxygenation, mechanical ventilation, mechanical circulatory support, advanced patient monitoring, ICU infrastructure equipment, patient flow management, and drainage solutions. The company also provides surgical perfusion, endoscopic vessel harvesting, intra-aortic balloon counterpulsation, and drainage solutions; and operating room infrastructure equipment, anesthesia, advanced patient monitoring, operating room management, and operating room integration solutions. In addition, it offers pre-cleaning, cleaning and disinfection, sterilization, consumables, endoscope reprocessing, and sterile supply management solutions; connected medical devices; bioreactor systems, DPTE systems, Getinge isolators, terminal sterilization products, and sterilizers; and vivarium, biohazardous materials handling solutions, labware cleaning and sterilization, upstream bioprocessing, and bioreactor preparation solutions. It offers its products through a network of sales companies, as well as through agents and distributors in the Americas, Europe, the Middle East, Africa, and the Asia and Pacific. Getinge AB (publ) was founded in 1904 and is headquartered in Gothenburg, Sweden.