Integer (NYSE: ITGR) and Medtronic (NYSE:MDT) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Risk & Volatility

Integer has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Medtronic has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Integer and Medtronic, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Integer 0 3 1 0 2.25
Medtronic 0 10 13 0 2.57

Integer currently has a consensus price target of $51.00, suggesting a potential upside of 11.48%. Medtronic has a consensus price target of $88.75, suggesting a potential upside of 8.23%. Given Integer’s higher probable upside, equities analysts clearly believe Integer is more favorable than Medtronic.

Profitability

This table compares Integer and Medtronic’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Integer 1.42% 11.22% 3.03%
Medtronic 16.93% 12.63% 6.51%

Earnings & Valuation

This table compares Integer and Medtronic’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Integer $1.39 billion 1.04 $5.96 million $0.64 71.48
Medtronic $29.71 billion 3.74 $4.03 billion $3.65 22.47

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

Dividends

Medtronic pays an annual dividend of $1.84 per share and has a dividend yield of 2.2%. Integer does not pay a dividend. Medtronic pays out 50.4% of its earnings in the form of a dividend. Integer has raised its dividend for 39 consecutive years.

Institutional and Insider Ownership

95.1% of Integer shares are held by institutional investors. Comparatively, 81.9% of Medtronic shares are held by institutional investors. 4.8% of Integer shares are held by company insiders. Comparatively, 0.3% of Medtronic shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Medtronic beats Integer on 11 of the 17 factors compared between the two stocks.

About Integer

Greatbatch, Inc. is a developer and manufacturer of medical devices and components. The Company operates through two segments: Greatbatch Medical and QiG Group (QiG). Greatbatch Medical designs and manufactures products where the Company either owns the intellectual property or has unique manufacturing and assembly expertise. Greatbatch Medical’s products include medical devices and components for the cardiac, neuromodulation, orthopedics, portable medical, vascular and energy markets. QiG focuses on developing medical device systems for some of healthcare’s challenges and reflects the Company’s strategic evolution of its product offerings in order to raise the growth and profitability profile of the Company. QiG utilizes a diversified portfolio approach with three investment modes: new medical device systems commercialization, collaborative programs with OEM customers and strategic equity positions in emerging healthcare companies.

About Medtronic

Medtronic Public Limited Company (Medtronic) is a medical technology and services company. The Company develops, manufactures and markets its medical devices and technologies to hospitals, physicians, clinicians and patients in approximately 160 countries. The Company operates in four segments: Cardiac and Vascular Group, Minimally Invasive Technologies Group, Restorative Therapies Group and Diabetes Group. The Cardiac and Vascular Group segment includes Cardiac Rhythm & Heart Failure, Coronary & Structural Heart and Aortic & Peripheral Vascula. Its Minimally Invasive Technologies Group segment includes Surgical Solutions and Patient Monitoring and Recovery. Its Restorative Therapies Group segment includes Spine, Neuromodulation, Surgical Technologies and Neurovascular. Its Diabetes Group segment includes Intensive Insulin Management, Non-Intensive Diabetes Therapies and Diabetes Services & Solutions. The Company’s subsidiaries include Medtronic, Inc. and HeartWare International, Inc.

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