GE HealthCare Technologies Inc. (GEHC) vs Stryker Corporation (SYK)

GE HealthCare Technologies Inc. and Stryker Corporation are both Medical Devices companies. Stryker Corporation is the larger, with a market value of $103.9B against $29.9B — 3.5× the size. GE HealthCare Technologies Inc. trades at the lower P/E: 15.3× against 28.0×. Stryker Corporation grew revenue faster over the last twelve months: 8.48% against 6.51%. Stryker Corporation has the higher net margin (14.4% vs 9.33%) and the higher return on invested capital (9.76% vs 8.37%). Both pay a dividend; Stryker Corporation yields more (0.77% vs 0.13%). Across the 23 metrics below, Stryker Corporation leads on 14 and GE HealthCare Technologies Inc. on 9.

Valuation

Metric GEHC SYK Medical Devices median
P/E 15.28 27.99 22.18
P/S 1.42 4.04 2.70
P/B 2.75 4.35 2.46
Price to free cash flow 19.12 22.21 22.53
EV/EBITDA 11.85 17.16 11.78
EV/Sales 1.86 4.49 2.38
Earnings yield 6.54% 3.57% (8.22%)
Free cash flow yield 5.23% 4.50% (7.80%)

Profitability

Metric GEHC SYK Medical Devices median
Gross margin 39.54% 64.98% 56.01%
Operating margin 12.86% 21.42% (15.03%)
Net margin 9.33% 14.43% (20.40%)
Free cash flow margin 7.42% 18.20% (7.24%)
Return on equity 19.15% 16.51% (15.32%)
Return on assets 5.45% 7.91% (19.72%)
Return on invested capital 8.37% 9.76% (10.33%)

Growth

Metric GEHC SYK Medical Devices median
Revenue growth (TTM) 6.51% 8.48% 8.80%
EPS growth (last fiscal year) 4.84% 8.25% —
Revenue growth, 5-year CAGR 3.74% 11.84% 15.23%
Net income growth, 5-year CAGR (31.53%) 15.21% 0.00%

Health

Metric GEHC SYK Medical Devices median
Debt to equity 1.05 0.62 0.07
Current ratio 1.26 2.16 2.50
Net debt to EBITDA 2.14 1.93 0.49

Dividend

Metric GEHC SYK Medical Devices median
Dividend yield 0.13% 0.77% 0.94%
Payout ratio — 0.42 0.00

Size

Metric GEHC SYK Medical Devices median
Market cap 29.86b 103.94b 172.91m

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