Head to Head Comparison: Medtronic (MDT) & Its Peers

Medtronic (NYSE: MDT) is one of 46 public companies in the “Electromedical equipment” industry, but how does it contrast to its rivals? We will compare Medtronic to related businesses based on the strength of its analyst recommendations, profitability, valuation, earnings, dividends, risk and institutional ownership.

Risk and Volatility

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Medtronic has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Medtronic’s rivals have a beta of 1.58, indicating that their average stock price is 58% more volatile than the S&P 500.



Profitability

This table compares Medtronic and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Medtronic 9.44% 12.65% 6.58%
Medtronic Competitors -136.44% 33.70% -12.43%

Institutional & Insider Ownership

81.2% of Medtronic shares are held by institutional investors. Comparatively, 40.7% of shares of all “Electromedical equipment” companies are held by institutional investors. 0.3% of Medtronic shares are held by insiders. Comparatively, 20.1% of shares of all “Electromedical equipment” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Medtronic pays an annual dividend of $1.84 per share and has a dividend yield of 2.3%. Medtronic pays out 40.0% of its earnings in the form of a dividend. As a group, “Electromedical equipment” companies pay a dividend yield of 1.9% and pay out 40.7% of their earnings in the form of a dividend. Medtronic has increased its dividend for 40 consecutive years. Medtronic is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Medtronic and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Medtronic $29.71 billion $4.03 billion 17.30
Medtronic Competitors $1.10 billion $121.87 million -38.42

Medtronic has higher revenue and earnings than its rivals. Medtronic is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and target prices for Medtronic and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Medtronic 0 6 16 0 2.73
Medtronic Competitors 146 439 968 26 2.55

Medtronic currently has a consensus target price of $91.24, suggesting a potential upside of 14.66%. As a group, “Electromedical equipment” companies have a potential upside of 19.85%. Given Medtronic’s rivals higher probable upside, analysts clearly believe Medtronic has less favorable growth aspects than its rivals.

Summary

Medtronic beats its rivals on 10 of the 15 factors compared.

Medtronic Company Profile

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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