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 $196.6B against $134.1B — 1.5× the size. Medtronic PLC trades at the lower P/E: 25.6× against 42.3×. Abbott Laboratories grew revenue faster over the last twelve months: 10.0% against 9.77%. Medtronic PLC has the higher net margin (13.9% vs 9.75%) and the higher return on invested capital (6.04% vs 0.00%). Both pay a dividend; Medtronic PLC yields more (2.74% vs 2.22%). Across the 23 metrics below, Medtronic PLC leads on 19 and Abbott Laboratories on 4.

Valuation

Metric ABT MDT Medical Devices median
P/E 42.32 25.62 25.58
P/S 4.09 3.56 2.54
P/B 3.81 2.63 2.48
Price to free cash flow 25.23 21.81 28.81
EV/EBITDA 20.79 15.74 11.51
EV/Sales 4.65 4.08 2.72
Earnings yield 2.36% 3.90% (12.82%)
Free cash flow yield 3.96% 4.58% (8.18%)

Profitability

Metric ABT MDT Medical Devices median
Gross margin 56.94% 65.01% 57.76%
Operating margin 13.78% 18.08% (15.07%)
Net margin 9.75% 13.93% (14.45%)
Free cash flow margin 0.00% 16.33% (3.88%)
Return on equity 0.00% 10.57% (10.35%)
Return on assets 0.00% 5.68% (17.26%)
Return on invested capital 0.00% 6.04% (5.27%)

Growth

Metric ABT MDT Medical Devices median
Revenue growth (TTM) 10.00% 9.77% 10.41%
EPS growth (last fiscal year) (51.31%) 3.32% 28.17%
Revenue growth, 5-year CAGR 5.08% 3.84% 15.74%
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 0.04
Current ratio 1.38 2.07 2.74
Net debt to EBITDA 0.36 1.99 0.54

Dividend

Metric ABT MDT Medical Devices median
Dividend yield 2.22% 2.74% 1.02%
Payout ratio 0.94 0.70 0.37

Size

Metric ABT MDT Medical Devices median
Market cap 196.57b 134.11b 239.53m

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