Head to Head Analysis: Stryker Corporation (SYK) and Its Peers

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

Valuation and Earnings

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

Gross Revenue NetIncome Price/Earnings Ratio
Stryker Corporation $11.33 billion $1.65 billion 33.13
Stryker Corporation Competitors $1.67 billion $207.58 million 59.19

Stryker Corporation has higher revenue and earnings than its peers. Stryker Corporation 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 Corporation pays an annual dividend of $1.70 per share and has a dividend yield of 1.1%. Stryker Corporation pays out 36.2% of its earnings in the form of a dividend. As a group, “Medical Devices & Implants” companies pay a dividend yield of 1.3% and pay out 39.8% of their earnings in the form of a dividend. Stryker Corporation has increased its dividend for 6 consecutive years.

Insider and Institutional Ownership

74.2% of Stryker Corporation shares are held by institutional investors. Comparatively, 42.4% of shares of all “Medical Devices & Implants” companies are held by institutional investors. 7.4% of Stryker Corporation shares are held by company insiders. Comparatively, 9.6% of shares of all “Medical Devices & Implants” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Stryker Corporation 14.67% 24.11% 11.44%
Stryker Corporation Competitors -101.83% -92.87% -30.39%

Analyst Ratings

This is a breakdown of current ratings for Stryker Corporation and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stryker Corporation 2 7 12 0 2.48
Stryker Corporation Competitors 109 727 1024 10 2.50

Stryker Corporation presently has a consensus price target of $152.37, suggesting a potential downside of 1.95%. As a group, “Medical Devices & Implants” companies have a potential upside of 39.39%. Given Stryker Corporation’s peers stronger consensus rating and higher possible upside, analysts plainly believe Stryker Corporation has less favorable growth aspects than its peers.

Risk and Volatility

Stryker Corporation has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Stryker Corporation’s peers have a beta of 0.36, suggesting that their average share price is 64% less volatile than the S&P 500.

Summary

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

About Stryker Corporation

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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