Stryker (NYSE: SYK) is one of 19 public companies in the “Medical Devices & Implants” industry, but how does it compare to its peers? We will compare Stryker to related businesses based on the strength of its institutional ownership, earnings, profitability, risk, valuation, analyst recommendations and dividends.

Risk and Volatility

Stryker has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Stryker’s peers have a beta of 0.35, suggesting that their average share price is 65% less volatile than the S&P 500.

Valuation and Earnings

This table compares Stryker and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Stryker $11.33 billion $1.65 billion 33.05
Stryker Competitors $1.67 billion $207.58 million 75.89

Stryker has higher revenue and earnings than its peers. Stryker 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.

Dividends

Stryker pays an annual dividend of $1.70 per share and has a dividend yield of 1.1%. Stryker pays out 36.3% of its earnings in the form of a dividend. As a group, “Medical Devices & Implants” companies pay a dividend yield of 1.2% and pay out 42.2% of their earnings in the form of a dividend. Stryker has raised its dividend for 6 consecutive years.

Profitability

This table compares Stryker and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stryker 14.67% 24.11% 11.44%
Stryker Competitors -101.23% -92.70% -30.32%

Institutional & Insider Ownership

74.2% of Stryker shares are owned by institutional investors. Comparatively, 57.4% of shares of all “Medical Devices & Implants” companies are owned by institutional investors. 7.4% of Stryker shares are owned by company insiders. Comparatively, 9.7% of shares of all “Medical Devices & Implants” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Stryker and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stryker 2 7 12 0 2.48
Stryker Competitors 109 727 1025 10 2.50

Stryker presently has a consensus price target of $152.37, suggesting a potential downside of 1.49%. As a group, “Medical Devices & Implants” companies have a potential upside of 40.16%. Given Stryker’s peers stronger consensus rating and higher probable upside, analysts clearly believe Stryker has less favorable growth aspects than its peers.

Summary

Stryker beats its peers on 9 of the 15 factors compared.

Stryker 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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