Financial Comparison: Stryker (SYK) and Its Competitors

Stryker (NYSE:SYK) is one of 511 public companies in the “Healthcare Equipment & Supplies” industry, but how does it weigh in compared to its competitors? We will compare Stryker to related businesses based on the strength of its valuation, institutional ownership, earnings, dividends, analyst recommendations, profitability and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Stryker	13.78%	23.74%	11.64%
Stryker Competitors	-304.20%	-315.07%	-22.11%

Dividends

Stryker pays an annual dividend of $3.52 per share and has a dividend yield of 1.1%. Stryker pays out 37.5% of its earnings in the form of a dividend. As a group, “Healthcare Equipment & Supplies” companies pay a dividend yield of 2.1% and pay out 47.8% of their earnings in the form of a dividend. Stryker has raised its dividend for 32 consecutive years.

Institutional & Insider Ownership

77.1% of Stryker shares are held by institutional investors. Comparatively, 40.5% of shares of all “Healthcare Equipment & Supplies” companies are held by institutional investors. 4.6% of Stryker shares are held by company insiders. Comparatively, 14.9% of shares of all “Healthcare Equipment & Supplies” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Stryker	$25.12 billion	$3.25 billion	33.76
Stryker Competitors	$1.90 billion	$135.83 million	5.88

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

Volatility and Risk

Stryker has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Stryker’s competitors have a beta of 2.57, suggesting that their average share price is 157% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Stryker and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stryker	0	7	21	0	2.75
Stryker Competitors	4291	10579	18364	831	2.46

Stryker presently has a consensus target price of $342.19, indicating a potential upside of 7.96%. As a group, “Healthcare Equipment & Supplies” companies have a potential upside of 21.18%. Given Stryker’s competitors higher possible upside, analysts clearly believe Stryker has less favorable growth aspects than its competitors.

Summary

Stryker beats its competitors on 10 of the 15 factors compared.

Stryker Company Profile

Stryker is a medical technology company that develops and sells products and services for healthcare providers. Its offerings include orthopedic implants and surgical equipment, neurotechnology and spine products, and medical and surgical equipment used in hospitals and other care settings. The company’s products also include patient-handling and emergency medical equipment, as well as instruments and technologies that support surgical procedures. Stryker serves healthcare customers in the United States and internationally.