Medtronic (NYSE:MDT) and GETINGE AB/ADR (OTCMKTS:GNGBY) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Dividends

Medtronic pays an annual dividend of $2.00 per share and has a dividend yield of 2.1%. GETINGE AB/ADR pays an annual dividend of $0.12 per share and has a dividend yield of 1.2%. Medtronic pays out 41.9% of its earnings in the form of a dividend. Medtronic has increased its dividend for 40 consecutive years. Medtronic is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

80.9% of Medtronic shares are held by institutional investors. Comparatively, 0.0% of GETINGE AB/ADR shares are held by institutional investors. 0.3% of Medtronic shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Medtronic and GETINGE AB/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Medtronic 7.44% 13.51% 7.45%
GETINGE AB/ADR 3.49% 4.75% 2.22%

Valuation and Earnings

This table compares Medtronic and GETINGE AB/ADR’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Medtronic $29.95 billion 4.20 $3.10 billion $4.77 19.65
GETINGE AB/ADR $5.27 billion 0.46 $161.40 million N/A N/A

Medtronic has higher revenue and earnings than GETINGE AB/ADR.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Medtronic and GETINGE AB/ADR, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Medtronic 0 6 12 1 2.74
GETINGE AB/ADR 0 0 0 0 N/A

Medtronic currently has a consensus target price of $104.86, indicating a potential upside of 11.89%. Given Medtronic’s higher probable upside, analysts clearly believe Medtronic is more favorable than GETINGE AB/ADR.

Volatility and Risk

Medtronic has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, GETINGE AB/ADR has a beta of 1.66, suggesting that its share price is 66% more volatile than the S&P 500.

Summary

Medtronic beats GETINGE AB/ADR on 13 of the 16 factors compared between the two stocks.

Medtronic Company Profile

Medtronic plc develops, manufactures, distributes, and sells device-based medical therapies to hospitals, physicians, clinicians, and patients worldwide. It operates through four segments: Cardiac and Vascular Group, Minimally Invasive Therapies Group, Restorative Therapies Group, and Diabetes Group. The Cardiac and Vascular Group segment offers implantable cardiac pacemakers, cardioverter defibrillators, and cardiac resynchronization therapy devices; AF ablation product; insertable cardiac monitor systems; mechanical circulatory support; TYRX products; and remote monitoring and patient-centered software. It also provides aortic valves; percutaneous coronary intervention stents, surgical valve replacement and repair products, endovascular stent grafts, percutaneous angioplasty balloons, and products to treat superficial venous diseases in the lower extremities. The Minimally Invasive Therapies Group segment offers surgical products, including surgical stapling devices, vessel sealing instruments, wound closure, electrosurgery products, hernia mechanical devices, mesh implants, and gynecology products; hardware instruments and mesh fixation device; and gastrointestinal, inhalation therapy, and renal care solutions. The Restorative Therapies Group segment offers products for spinal surgeons, neurosurgeons, neurologists, pain management specialists, anesthesiologists, orthopedic surgeons, urologists, colorectal surgeons, urogynecologists, interventional radiologists, and ear, nose, and throat specialists; and systems that incorporate energy surgical instruments. It also provides image-guided surgery and intra-operative imaging systems; and therapies for vasculature in and around the brain. The Diabetes Group segment offers insulin pumps and consumables, continuous glucose monitoring systems, and therapy management software. The company was founded in 1949 and is headquartered in Dublin, Ireland.

GETINGE AB/ADR Company Profile

Getinge AB provides solutions for operating rooms, intensive-care units, sterilization departments, and life science companies and institutions. The company operates through Acute Care Therapies, Surgical Workflows, and Life Science segments. It offers anesthesia systems, acute care ventilation and hemodynamic monitoring, covered stents, aortic surgical and peripheral vascular grafts, thoracic drainage, surgery perfusion, extracorporeal life support, cardiac assist, endoscopic vessel harvesting systems, beating heart surgery products. The company also provides surgical tables and lamps, ceiling service units, wall modules, and hybrid operating rooms (OR); infection control products; integrated workflow solutions, including sterile supply management, patient flow optimization, and OR integration; and life science, such as sterilizers, cleaning and asepsis products, and isolators. It offers its products through a network of proprietary sales companies, as well as through agents and distributors in Europe, the Middle East, Africa, the Americas, Asia, and Pacific. The company has a strategic partnership with Verb Surgical Inc. to develop digital surgery solutions. Getinge AB was founded in 1904 and is headquartered in Gothenburg, Sweden.

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