Medtronic PLC (MDT) vs STERIS plc (STE)

Medtronic PLC and STERIS plc are both Medical Devices companies. Medtronic PLC is the larger, with a market value of $112.2B against $20.4B — 5.5× the size. Medtronic PLC trades at the lower P/E: 21.7× against 25.4×. Medtronic PLC grew revenue faster over the last twelve months: 9.77% against 8.37%. Medtronic PLC has the higher net margin (13.9% vs 13.3%) and the lower return on invested capital (6.04% vs 8.27%). Both pay a dividend; Medtronic PLC yields more (3.07% vs 0.92%). Across the 23 metrics below, Medtronic PLC leads on 13 and STERIS plc on 10.

Valuation

Metric MDT STE Medical Devices median
P/E 21.73 25.45 22.18
P/S 3.02 3.38 2.70
P/B 2.23 2.82 2.46
Price to free cash flow 18.50 21.79 22.53
EV/EBITDA 13.65 13.35 11.78
EV/Sales 3.54 3.61 2.38
Earnings yield 4.60% 3.93% (8.22%)
Free cash flow yield 5.41% 4.59% (7.80%)

Profitability

Metric MDT STE Medical Devices median
Gross margin 65.01% 44.43% 56.01%
Operating margin 18.08% 18.91% (15.03%)
Net margin 13.93% 13.33% (20.40%)
Free cash flow margin 16.33% 15.50% (7.24%)
Return on equity 10.57% 11.35% (15.32%)
Return on assets 5.68% 7.62% (19.72%)
Return on invested capital 6.04% 8.27% (10.33%)

Growth

Metric MDT STE Medical Devices median
Revenue growth (TTM) 9.77% 8.37% 8.80%
EPS growth (last fiscal year) 3.32% 27.90% —
Revenue growth, 5-year CAGR 3.84% 13.82% 15.23%
Net income growth, 5-year CAGR 5.89% 14.51% 0.00%

Health

Metric MDT STE Medical Devices median
Debt to equity 0.55 0.26 0.07
Current ratio 2.07 1.91 2.50
Net debt to EBITDA 1.99 0.94 0.49

Dividend

Metric MDT STE Medical Devices median
Dividend yield 3.07% 0.92% 0.94%
Payout ratio 1.01 1.55 0.00

Size

Metric MDT STE Medical Devices median
Market cap 112.17b 20.36b 172.91m

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