Smith & Nephew SNATS (NYSE: SNN) and Stryker Corporation (NYSE:SYK) are both large-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.
This is a breakdown of recent ratings and recommmendations for Smith & Nephew SNATS and Stryker Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Smith & Nephew SNATS||0||4||3||0||2.43|
Smith & Nephew SNATS presently has a consensus target price of $42.00, indicating a potential upside of 9.78%. Stryker Corporation has a consensus target price of $146.47, indicating a potential downside of 0.06%. Given Smith & Nephew SNATS’s higher possible upside, analysts clearly believe Smith & Nephew SNATS is more favorable than Stryker Corporation.
This table compares Smith & Nephew SNATS and Stryker Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Smith & Nephew SNATS||N/A||N/A||N/A|
Insider and Institutional Ownership
6.4% of Smith & Nephew SNATS shares are held by institutional investors. Comparatively, 74.1% of Stryker Corporation shares are held by institutional investors. 1.0% of Smith & Nephew SNATS shares are held by company insiders. Comparatively, 7.4% of Stryker Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Smith & Nephew SNATS pays an annual dividend of $0.61 per share and has a dividend yield of 1.6%. Stryker Corporation pays an annual dividend of $1.70 per share and has a dividend yield of 1.2%. Stryker Corporation pays out 37.9% of its earnings in the form of a dividend. Smith & Nephew SNATS has raised its dividend for 4 consecutive years and Stryker Corporation has raised its dividend for 6 consecutive years.
Valuation and Earnings
This table compares Smith & Nephew SNATS and Stryker Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Smith & Nephew SNATS||$4.68 billion||3.58||$1.32 billion||N/A||N/A|
|Stryker Corporation||$11.96 billion||4.58||$3.29 billion||$4.48||32.71|
Stryker Corporation has higher revenue and earnings than Smith & Nephew SNATS.
Volatility and Risk
Smith & Nephew SNATS has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, Stryker Corporation has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.
Stryker Corporation beats Smith & Nephew SNATS on 12 of the 15 factors compared between the two stocks.
Smith & Nephew SNATS Company Profile
Smith & Nephew plc is a medical technology company. The Company is engaged in developing, manufacturing, marketing and selling medical devices and services. Its products and services include Sports Medicine Joint Repair, Arthroscopic Enabling Technologies (AET), Trauma & Extremities, Other Surgical Businesses, Knee Implants, Hip Implants, Advanced Wound Care, Advanced Wound Bioactives and Advanced Wound Devices. The Sports Medicine Joint Repair franchise offers surgeons a range of instruments, technologies and implants necessary to perform minimally invasive surgery of the joints, including the repair of soft tissue injuries and degenerative conditions of the knee, hip and shoulder. The AET franchise offers an array of minimally invasive surgery-enabling systems and devices. The Trauma & Extremities franchise supports healthcare professionals with solutions used by surgeons to stabilize severe fractures, correct bone deformities, treat arthritis and heal soft tissue complications.
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.
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