Critical Survey: Stryker (NYSE:SYK) vs. Curaleaf (OTCMKTS:CURLF)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Stryker	14.43%	23.63%	11.39%
Curaleaf	-2.62%	-0.88%	-0.26%

Insider and Institutional Ownership

77.1% of Stryker shares are owned by institutional investors. Comparatively, 0.0% of Curaleaf shares are owned by institutional investors. 4.6% of Stryker shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Stryker has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, Curaleaf has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500.

Earnings and Valuation

This table compares Stryker and Curaleaf”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stryker	$25.12 billion	4.17	$3.25 billion	$9.65	28.30
Curaleaf	$1.27 billion	1.89	-$231.07 million	($0.13)	-79.10

Stryker has higher revenue and earnings than Curaleaf. Curaleaf is trading at a lower price-to-earnings ratio than Stryker, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for Stryker and Curaleaf, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stryker	0	5	19	0	2.79
Curaleaf	0	0	2	3	3.60

Stryker currently has a consensus price target of $372.64, indicating a potential upside of 36.47%. Given Stryker’s higher probable upside, analysts plainly believe Stryker is more favorable than Curaleaf.

Summary

Stryker beats Curaleaf on 12 of the 15 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 Curaleaf

Curaleaf Holdings, Inc. operates a cannabis operator in the United States. It operates through two segments, Domestic Operations and International Operations. The company offers flower, pre-rolls, flower pots, and dry-herb vaporizer cartridges; concentrates for vaporizing which includes pre-filled vaporizer cartridges and disposable vaporizer pens; and concentrates for dabbing, such as mints, distillate droppers, mints, topical balms and lotions, tinctures, lozenges, capsules, and edibles. It also provides hemp-based products and cannabinoids, such as cannabidiol and cannabigerol. In addition, the company engages in the cultivation, production, and sale of cannabis products through retail and wholesale channels. The company is headquartered in New York, New York.