Abbott Laboratories (ABT) vs Medtronic PLC (MDT)

Abbott Laboratories and Medtronic PLC are both Medical Devices companies. Abbott Laboratories is the larger, with a market value of $174.8B against $112.2B — 1.6× the size. Medtronic PLC trades at the lower P/E: 21.7× against 32.8×. Medtronic PLC grew revenue faster over the last twelve months: 9.77% against 8.06%. Medtronic PLC has the higher net margin (13.9% vs 11.7%) and the higher return on invested capital (6.04% vs 5.83%). Both pay a dividend; Medtronic PLC yields more (3.07% vs 1.88%). Across the 23 metrics below, Medtronic PLC leads on 18 and Abbott Laboratories on 5.

Valuation

Metric ABT MDT Medical Devices median
P/E 32.78 21.73 22.18
P/S 3.78 3.02 2.70
P/B 3.41 2.23 2.46
Price to free cash flow 22.53 18.50 22.53
EV/EBITDA 18.84 13.65 11.78
EV/Sales 4.36 3.54 2.38
Earnings yield 3.05% 4.60% (8.22%)
Free cash flow yield 4.44% 5.41% (7.80%)

Profitability

Metric ABT MDT Medical Devices median
Gross margin 56.61% 65.01% 56.01%
Operating margin 15.77% 18.08% (15.03%)
Net margin 11.65% 13.93% (20.40%)
Free cash flow margin 16.80% 16.33% (7.24%)
Return on equity 10.58% 10.57% (15.32%)
Return on assets 5.62% 5.68% (19.72%)
Return on invested capital 5.83% 6.04% (10.33%)

Growth

Metric ABT MDT Medical Devices median
Revenue growth (TTM) 8.06% 9.77% 8.80%
EPS growth (last fiscal year) (51.31%) 3.32% —
Revenue growth, 5-year CAGR 5.08% 3.84% 15.23%
Net income growth, 5-year CAGR 7.74% 5.89% 0.00%

Health

Metric ABT MDT Medical Devices median
Debt to equity 0.63 0.55 0.07
Current ratio 1.38 2.07 2.50
Net debt to EBITDA 0.36 1.99 0.49

Dividend

Metric ABT MDT Medical Devices median
Dividend yield 1.88% 3.07% 0.94%
Payout ratio 0.67 1.01 0.00

Size

Metric ABT MDT Medical Devices median
Market cap 174.77b 112.17b 172.91m

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