STERIS plc (STE) vs Stryker Corporation (SYK)

STERIS plc and Stryker Corporation are both Medical Devices companies. Stryker Corporation is the larger, with a market value of $103.9B against $20.4B — 5.1× the size. STERIS plc trades at the lower P/E: 25.4× against 28.0×. Stryker Corporation grew revenue faster over the last twelve months: 8.48% against 8.37%. Stryker Corporation has the higher net margin (14.4% vs 13.3%) and the higher return on invested capital (9.76% vs 8.27%). Both pay a dividend; STERIS plc yields more (0.92% vs 0.77%). Across the 23 metrics below, STERIS plc leads on 13 and Stryker Corporation on 10.

Valuation

Metric STE SYK Medical Devices median
P/E 25.45 27.99 22.18
P/S 3.38 4.04 2.70
P/B 2.82 4.35 2.46
Price to free cash flow 21.79 22.21 22.53
EV/EBITDA 13.35 17.16 11.78
EV/Sales 3.61 4.49 2.38
Earnings yield 3.93% 3.57% (8.22%)
Free cash flow yield 4.59% 4.50% (7.80%)

Profitability

Metric STE SYK Medical Devices median
Gross margin 44.43% 64.98% 56.01%
Operating margin 18.91% 21.42% (15.03%)
Net margin 13.33% 14.43% (20.40%)
Free cash flow margin 15.50% 18.20% (7.24%)
Return on equity 11.35% 16.51% (15.32%)
Return on assets 7.62% 7.91% (19.72%)
Return on invested capital 8.27% 9.76% (10.33%)

Growth

Metric STE SYK Medical Devices median
Revenue growth (TTM) 8.37% 8.48% 8.80%
EPS growth (last fiscal year) 27.90% 8.25% —
Revenue growth, 5-year CAGR 13.82% 11.84% 15.23%
Net income growth, 5-year CAGR 14.51% 15.21% 0.00%

Health

Metric STE SYK Medical Devices median
Debt to equity 0.26 0.62 0.07
Current ratio 1.91 2.16 2.50
Net debt to EBITDA 0.94 1.93 0.49

Dividend

Metric STE SYK Medical Devices median
Dividend yield 0.92% 0.77% 0.94%
Payout ratio 1.55 0.42 0.00

Size

Metric STE SYK Medical Devices median
Market cap 20.36b 103.94b 172.91m

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