Edwards Lifesciences vs Medtronic Which Is More Reliable?

Edwards Lifesciences and Medtronic are two leading medical device companies in the healthcare industry. Both companies have been market leaders in developing innovative products and solutions for the treatment of cardiovascular diseases. Investors often compare the stocks of these companies to make informed decisions on their investments. While both companies have seen steady growth in recent years, Medtronic has a larger market capitalization and a more diversified product portfolio. However, Edwards Lifesciences is known for its strong focus on heart valve technology, which has resulted in impressive financial performance.

Edwards Lifesciences or Medtronic?

When comparing Edwards Lifesciences and Medtronic, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Edwards Lifesciences and Medtronic.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Edwards Lifesciences has a dividend yield of -%, while Medtronic has a dividend yield of 3.33%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Edwards Lifesciences reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Medtronic reports a 5-year dividend growth of 13.50% year and a payout ratio of 84.54%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Edwards Lifesciences P/E ratio at 10.54 and Medtronic's P/E ratio at 25.00. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Edwards Lifesciences P/B ratio is 4.59 while Medtronic's P/B ratio is 2.21.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Edwards Lifesciences has seen a 5-year revenue growth of 0.67%, while Medtronic's is 0.06%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Edwards Lifesciences's ROE at 54.10% and Medtronic's ROE at 8.64%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $71.06 for Edwards Lifesciences and $82.88 for Medtronic. Over the past year, Edwards Lifesciences's prices ranged from $58.93 to $96.12, with a yearly change of 63.11%. Medtronic's prices fluctuated between $75.96 and $92.68, with a yearly change of 22.01%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.