Medtronic (NYSE: MDT) is one of 46 public companies in the “Electromedical equipment” industry, but how does it compare to its peers? We will compare Medtronic to related businesses based on the strength of its profitability, institutional ownership, dividends, risk, valuation, analyst recommendations and earnings.
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 peers, given its higher yield and lower payout ratio.
This table compares Medtronic and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Medtronic||$29.71 billion||$4.03 billion||17.36|
|Medtronic Competitors||$1.10 billion||$121.87 million||-38.29|
Medtronic has higher revenue and earnings than its peers. Medtronic is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Volatility and Risk
Medtronic has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, Medtronic’s peers have a beta of 1.58, meaning that their average stock price is 58% more volatile than the S&P 500.
Insider and Institutional Ownership
81.2% of Medtronic shares are owned by institutional investors. Comparatively, 40.7% of shares of all “Electromedical equipment” companies are owned by institutional investors. 0.3% of Medtronic shares are owned by insiders. Comparatively, 20.1% of shares of all “Electromedical equipment” companies 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.
This is a summary of recent ratings for Medtronic and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Medtronic presently has a consensus price target of $91.03, indicating a potential upside of 14.01%. As a group, “Electromedical equipment” companies have a potential upside of 19.77%. Given Medtronic’s peers higher probable upside, analysts plainly believe Medtronic has less favorable growth aspects than its peers.
This table compares Medtronic and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Medtronic beats its peers 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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