Financial Analysis: Stryker (NYSE:SYK) versus Metastat (OTCMKTS:MTST)

Stryker (NYSE:SYK) and Metastat (OTCMKTS:MTST) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Insider and Institutional Ownership

77.1% of Stryker shares are owned by institutional investors. 4.6% of Stryker shares are owned by insiders. Comparatively, 8.5% of Metastat shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Stryker has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, Metastat has a beta of 272.79, indicating that its stock price is 27,179% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Stryker and Metastat, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stryker	0	6	16	0	2.73
Metastat	0	0	0	0	0.00

Stryker currently has a consensus price target of $395.48, suggesting a potential upside of 26.36%. Given Stryker’s stronger consensus rating and higher probable upside, analysts clearly believe Stryker is more favorable than Metastat.

Profitability

This table compares Stryker and Metastat’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stryker	13.20%	23.42%	11.04%
Metastat	N/A	N/A	N/A

Valuation & Earnings

This table compares Stryker and Metastat”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stryker	$25.12 billion	4.78	$3.25 billion	$8.64	36.23
Metastat	N/A	N/A	N/A	N/A	N/A

Stryker has higher revenue and earnings than Metastat.

Summary

Stryker beats Metastat on 8 of the 10 factors compared between the two stocks.

About Stryker

Stryker Corporation operates as a medical technology company. The company operates through two segments, MedSurg and Neurotechnology, and Orthopaedics and Spine. The Orthopaedics and Spine segment provides implants for use in total joint replacements, such as hip, knee and shoulder, and trauma and extremities surgeries. This segment also offers spinal implant products comprising cervical and thoracolumbar systems that include fixation, minimally invasive and interbody systems used in spinal injury, complex spine and degenerative therapies. The MedSurg and Neurotechnology segment offers surgical equipment, and surgical navigation systems, endoscopic and communications systems, patient handling, emergency medical equipment and intensive care disposable products, reprocessed and remanufactured medical devices, clinical communication and workflow solutions, and other medical device products that are used in various medical specialties, as well as patient and caregiver safety technologies. This segment also provides neurosurgical, neurovascular and craniomaxillofacial implant products, which include products used for minimally invasive endovascular procedures; products for brain and open skull based surgical procedures; orthobiologic and biosurgery products, such as synthetic bone grafts and vertebral augmentation products; minimally invasive products for the treatment of acute ischemic and hemorrhagic stroke; and craniomaxillofacial implant products, including cranial, maxillofacial, and chest wall devices, as well as dural substitutes and sealants. The company sells its products to doctors, hospitals, and other healthcare facilities through company-owned subsidiaries and branches, as well as third-party dealers and distributors in approximately 75 countries. Stryker Corporation was founded in 1941 and is headquartered in Portage, Michigan.

About Metastat

MetaStat, Inc., a precision medicine company, focuses on discovering and developing therapeutic and diagnostic treatment solutions for cancer patients. The company is developing novel drug candidates and companion diagnostic tests that target the MENA pathway. Its product candidates include MENA diagnostic assay, a tissue-based quantitative immunofluorescence test that measures expression of the pro-metastatic MENA protein splice-variant; companion diagnostic to predict RTK inhibitor drug responses and anti-microtubule drug responses; liquid blood-based biopsy to enhance cancer diagnosis and optimize patient care; MetaSite Breast assay, an immunohistochemistry test that measures micro-anatomical intravasat at blood vessels within the tumor microenvironment ion sites; and prognostic diagnostic to predict risk of cancer metastasis. The company’s therapeutic targets a critical metastatic pathway in solid tumors responsible for driving tumor resistance and the spread of aggressive cancer. MetaStat, Inc. is based in Boston, Massachusetts.