Medtronic vs Edwards Lifesciences Which Is More Favorable?

Medtronic and Edwards Lifesciences are two prominent players in the medical device industry, with a focus on cardiovascular health. Medtronic, a global leader in medical technology, offers a wide range of products including pacemakers, defibrillators, and stents. Edwards Lifesciences specializes in heart valve therapies and has seen significant growth in recent years. Investors often compare the performance of these two stocks, as both companies operate in a competitive and rapidly evolving market.

Medtronic or Edwards Lifesciences?

When comparing Medtronic and Edwards Lifesciences, 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 Medtronic and Edwards Lifesciences.

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. Medtronic has a dividend yield of 3.31%, while Edwards Lifesciences has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Medtronic reports a 5-year dividend growth of 13.50% year and a payout ratio of 84.54%. On the other hand, Edwards Lifesciences reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 Medtronic P/E ratio at 25.11 and Edwards Lifesciences's P/E ratio at 10.18. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Medtronic P/B ratio is 2.22 while Edwards Lifesciences's P/B ratio is 4.44.

Growth Investors:

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

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $83.66 for Medtronic and $70.59 for Edwards Lifesciences. Over the past year, Medtronic's prices ranged from $75.96 to $92.68, with a yearly change of 22.01%. Edwards Lifesciences's prices fluctuated between $58.93 and $96.12, with a yearly change of 63.11%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.