SYK vs. ABT, ISRG, BSX, MDT, BDX, EW, DXCM, IDXX, RMD, and STE
Should you be buying Stryker stock or one of its competitors? The main competitors of Stryker include Abbott Laboratories (ABT), Intuitive Surgical (ISRG), Boston Scientific (BSX), Medtronic (MDT), 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 Stryker (NYSE:SYK) are both large-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability, media sentiment, dividends and community ranking.
Abbott Laboratories has higher revenue and earnings than Stryker. Abbott Laboratories is trading at a lower price-to-earnings ratio than Stryker, indicating that it is currently the more affordable of the two stocks.
Abbott Laboratories pays an annual dividend of $2.20 per share and has a dividend yield of 2.2%. Stryker pays an annual dividend of $3.20 per share and has a dividend yield of 0.9%. Abbott Laboratories pays out 68.5% of its earnings in the form of a dividend. Stryker pays out 36.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Abbott Laboratories has raised its dividend for 53 consecutive years and Stryker has raised its dividend for 31 consecutive years. Abbott Laboratories is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Abbott Laboratories presently has a consensus target price of $120.64, indicating a potential upside of 18.05%. Stryker has a consensus target price of $370.58, indicating a potential upside of 8.65%. Given Stryker's higher possible upside, research analysts clearly believe Abbott Laboratories is more favorable than Stryker.
Abbott Laboratories has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Stryker has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.
Stryker has a net margin of 16.03% compared to Stryker's net margin of 13.96%. Abbott Laboratories' return on equity of 23.05% beat Stryker's return on equity.
75.2% of Abbott Laboratories shares are held by institutional investors. Comparatively, 77.1% of Stryker shares are held by institutional investors. 1.1% of Abbott Laboratories shares are held by insiders. Comparatively, 5.9% of Stryker shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
In the previous week, Abbott Laboratories had 4 more articles in the media than Stryker. MarketBeat recorded 23 mentions for Abbott Laboratories and 19 mentions for Stryker. Abbott Laboratories' average media sentiment score of 0.96 beat Stryker's score of 0.48 indicating that Stryker is being referred to more favorably in the news media.
Abbott Laboratories received 30 more outperform votes than Stryker when rated by MarketBeat users. Likewise, 69.64% of users gave Abbott Laboratories an outperform vote while only 64.49% of users gave Stryker an outperform vote.
Summary
Stryker beats Abbott Laboratories on 13 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding SYK 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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