Abbott Laboratories (ABT) vs Stryker Corporation (SYK)

Abbott Laboratories and Stryker Corporation are both Medical Devices companies. Abbott Laboratories is the larger, with a market value of $174.8B against $103.9B — 1.7× the size. Stryker Corporation trades at the lower P/E: 28.0× against 32.8×. Stryker Corporation grew revenue faster over the last twelve months: 8.48% against 8.06%. Stryker Corporation has the higher net margin (14.4% vs 11.7%) and the higher return on invested capital (9.76% vs 5.83%). Both pay a dividend; Abbott Laboratories yields more (1.88% vs 0.77%). Across the 23 metrics below, Stryker Corporation leads on 18 and Abbott Laboratories on 5.

Valuation

Metric ABT SYK Medical Devices median
P/E 32.78 27.99 22.18
P/S 3.78 4.04 2.70
P/B 3.41 4.35 2.46
Price to free cash flow 22.53 22.21 22.53
EV/EBITDA 18.84 17.16 11.78
EV/Sales 4.36 4.49 2.38
Earnings yield 3.05% 3.57% (8.22%)
Free cash flow yield 4.44% 4.50% (7.80%)

Profitability

Metric ABT SYK Medical Devices median
Gross margin 56.61% 64.98% 56.01%
Operating margin 15.77% 21.42% (15.03%)
Net margin 11.65% 14.43% (20.40%)
Free cash flow margin 16.80% 18.20% (7.24%)
Return on equity 10.58% 16.51% (15.32%)
Return on assets 5.62% 7.91% (19.72%)
Return on invested capital 5.83% 9.76% (10.33%)

Growth

Metric ABT SYK Medical Devices median
Revenue growth (TTM) 8.06% 8.48% 8.80%
EPS growth (last fiscal year) (51.31%) 8.25% —
Revenue growth, 5-year CAGR 5.08% 11.84% 15.23%
Net income growth, 5-year CAGR 7.74% 15.21% 0.00%

Health

Metric ABT SYK Medical Devices median
Debt to equity 0.63 0.62 0.07
Current ratio 1.38 2.16 2.50
Net debt to EBITDA 0.36 1.93 0.49

Dividend

Metric ABT SYK Medical Devices median
Dividend yield 1.88% 0.77% 0.94%
Payout ratio 0.67 0.42 0.00

Size

Metric ABT SYK Medical Devices median
Market cap 174.77b 103.94b 172.91m

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