Medtronic PLC (MDT) vs Stryker Corporation (SYK)

Medtronic PLC and Stryker Corporation are both Medical Devices companies. Medtronic PLC and Stryker Corporation are of similar size ($112.2B and $103.9B). Medtronic PLC trades at the lower P/E: 21.7× against 28.0×. Medtronic PLC grew revenue faster over the last twelve months: 9.77% against 8.48%. Stryker Corporation has the higher net margin (14.4% vs 13.9%) and the higher return on invested capital (9.76% vs 6.04%). Both pay a dividend; Medtronic PLC yields more (3.07% vs 0.77%). Across the 23 metrics below, Medtronic PLC leads on 12 and Stryker Corporation on 11.

Valuation

Metric MDT SYK Medical Devices median
P/E 21.73 27.99 22.18
P/S 3.02 4.04 2.70
P/B 2.23 4.35 2.46
Price to free cash flow 18.50 22.21 22.53
EV/EBITDA 13.65 17.16 11.78
EV/Sales 3.54 4.49 2.38
Earnings yield 4.60% 3.57% (8.22%)
Free cash flow yield 5.41% 4.50% (7.80%)

Profitability

Metric MDT SYK Medical Devices median
Gross margin 65.01% 64.98% 56.01%
Operating margin 18.08% 21.42% (15.03%)
Net margin 13.93% 14.43% (20.40%)
Free cash flow margin 16.33% 18.20% (7.24%)
Return on equity 10.57% 16.51% (15.32%)
Return on assets 5.68% 7.91% (19.72%)
Return on invested capital 6.04% 9.76% (10.33%)

Growth

Metric MDT SYK Medical Devices median
Revenue growth (TTM) 9.77% 8.48% 8.80%
EPS growth (last fiscal year) 3.32% 8.25% —
Revenue growth, 5-year CAGR 3.84% 11.84% 15.23%
Net income growth, 5-year CAGR 5.89% 15.21% 0.00%

Health

Metric MDT SYK Medical Devices median
Debt to equity 0.55 0.62 0.07
Current ratio 2.07 2.16 2.50
Net debt to EBITDA 1.99 1.93 0.49

Dividend

Metric MDT SYK Medical Devices median
Dividend yield 3.07% 0.77% 0.94%
Payout ratio 1.01 0.42 0.00

Size

Metric MDT SYK Medical Devices median
Market cap 112.17b 103.94b 172.91m

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