MDT vs. ABT, ISRG, SYK, BSX, BDX, EW, DXCM, IDXX, RMD, and STE
Should you be buying Medtronic stock or one of its competitors? The main competitors of Medtronic include Abbott Laboratories (ABT), Intuitive Surgical (ISRG), Stryker (SYK), Boston Scientific (BSX), Becton, Dickinson and Company (BDX), Edwards Lifesciences (EW), DexCom (DXCM), IDEXX Laboratories (IDXX), ResMed (RMD), and STERIS (STE). These companies are all part of the "health care equipment" industry.
Abbott Laboratories (NYSE:ABT) and Medtronic (NYSE:MDT) are both large-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, media sentiment, community ranking, risk, institutional ownership and earnings.
75.2% of Abbott Laboratories shares are held by institutional investors. Comparatively, 82.1% of Medtronic shares are held by institutional investors. 1.1% of Abbott Laboratories shares are held by insiders. Comparatively, 0.3% of Medtronic shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Abbott Laboratories has higher revenue and earnings than Medtronic. Medtronic is trading at a lower price-to-earnings ratio than Abbott Laboratories, indicating that it is currently the more affordable of the two stocks.
Abbott Laboratories has a net margin of 13.96% compared to Abbott Laboratories' net margin of 11.36%. Medtronic's return on equity of 20.18% beat Abbott Laboratories' return on equity.
Abbott Laboratories has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Medtronic has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.
Abbott Laboratories pays an annual dividend of $2.20 per share and has a dividend yield of 2.2%. Medtronic pays an annual dividend of $2.80 per share and has a dividend yield of 3.4%. Abbott Laboratories pays out 68.5% of its earnings in the form of a dividend. Medtronic pays out 101.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Abbott Laboratories has raised its dividend for 53 consecutive years and Medtronic has raised its dividend for 47 consecutive years.
Medtronic received 659 more outperform votes than Abbott Laboratories when rated by MarketBeat users. Likewise, 76.35% of users gave Medtronic an outperform vote while only 69.64% of users gave Abbott Laboratories an outperform vote.
In the previous week, Medtronic had 15 more articles in the media than Abbott Laboratories. MarketBeat recorded 38 mentions for Medtronic and 23 mentions for Abbott Laboratories. Abbott Laboratories' average media sentiment score of 0.66 beat Medtronic's score of 0.48 indicating that Medtronic is being referred to more favorably in the news media.
Abbott Laboratories currently has a consensus target price of $120.64, indicating a potential upside of 18.05%. Medtronic has a consensus target price of $93.00, indicating a potential upside of 14.29%. Given Medtronic's stronger consensus rating and higher probable upside, research analysts clearly believe Abbott Laboratories is more favorable than Medtronic.
Summary
Abbott Laboratories beats Medtronic on 14 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding MDT and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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