GE HealthCare Technologies Inc. (GEHC) vs Medtronic PLC (MDT)

GE HealthCare Technologies Inc. and Medtronic PLC are both Medical Devices companies. Medtronic PLC is the larger, with a market value of $112.2B against $29.9B — 3.8× the size. GE HealthCare Technologies Inc. trades at the lower P/E: 15.3× against 21.7×. Medtronic PLC grew revenue faster over the last twelve months: 9.77% against 6.51%. Medtronic PLC has the higher net margin (13.9% vs 9.33%) and the lower return on invested capital (6.04% vs 8.37%). Both pay a dividend; Medtronic PLC yields more (3.07% vs 0.13%). Across the 23 metrics below, Medtronic PLC leads on 15 and GE HealthCare Technologies Inc. on 8.

Valuation

Metric GEHC MDT Medical Devices median
P/E 15.28 21.73 22.18
P/S 1.42 3.02 2.70
P/B 2.75 2.23 2.46
Price to free cash flow 19.12 18.50 22.53
EV/EBITDA 11.85 13.65 11.78
EV/Sales 1.86 3.54 2.38
Earnings yield 6.54% 4.60% (8.22%)
Free cash flow yield 5.23% 5.41% (7.80%)

Profitability

Metric GEHC MDT Medical Devices median
Gross margin 39.54% 65.01% 56.01%
Operating margin 12.86% 18.08% (15.03%)
Net margin 9.33% 13.93% (20.40%)
Free cash flow margin 7.42% 16.33% (7.24%)
Return on equity 19.15% 10.57% (15.32%)
Return on assets 5.45% 5.68% (19.72%)
Return on invested capital 8.37% 6.04% (10.33%)

Growth

Metric GEHC MDT Medical Devices median
Revenue growth (TTM) 6.51% 9.77% 8.80%
EPS growth (last fiscal year) 4.84% 3.32% —
Revenue growth, 5-year CAGR 3.74% 3.84% 15.23%
Net income growth, 5-year CAGR (31.53%) 5.89% 0.00%

Health

Metric GEHC MDT Medical Devices median
Debt to equity 1.05 0.55 0.07
Current ratio 1.26 2.07 2.50
Net debt to EBITDA 2.14 1.99 0.49

Dividend

Metric GEHC MDT Medical Devices median
Dividend yield 0.13% 3.07% 0.94%
Payout ratio — 1.01 0.00

Size

Metric GEHC MDT Medical Devices median
Market cap 29.86b 112.17b 172.91m

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