Medtronic vs Nevro Which Is Superior?

Both Medtronic and Nevro are leading companies in the medical device industry, specializing in neurostimulation technology. Medtronic, a multinational corporation, has a long-standing history and reputation for innovation and quality in the healthcare sector. On the other hand, Nevro is a smaller, but rapidly growing player in the market with a focus on developing cutting-edge solutions for chronic pain management. Investors looking to capitalize on the growing demand for neurostimulation devices may find both Medtronic and Nevro stocks as attractive investment opportunities.

Medtronic or Nevro?

When comparing Medtronic and Nevro, 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 Nevro.

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 3.37%, while Nevro 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, Nevro 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 24.67 and Nevro's P/E ratio at -2.19. 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 2.18 while Nevro's P/B ratio is 0.56.

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 Nevro's is -0.08%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Medtronic's ROE at 8.64% and Nevro's ROE at -24.76%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $81.89 for Medtronic and $3.92 for Nevro. Over the past year, Medtronic's prices ranged from $75.96 to $92.68, with a yearly change of 22.01%. Nevro's prices fluctuated between $3.92 and $22.64, with a yearly change of 477.01%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.