Medtronic vs Tandem Which Offers More Value?

Medtronic and Tandem Diabetes Care are two prominent companies in the medical device industry, particularly focused on diabetes management. Medtronic, a multinational corporation, has a long-standing reputation and a diverse portfolio of medical devices. On the other hand, Tandem Diabetes Care is a relatively newer player in the market, known for its innovative insulin pumps and technology. Investors often compare and contrast the performance of Medtronic and Tandem stocks to make informed decisions on their investment strategies.

Medtronic or Tandem?

When comparing Medtronic and Tandem, 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 Tandem.

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 3.33%, while Tandem 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, Tandem reports a 5-year dividend growth of 9.52% year and a payout ratio of -40.74%.

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 25.00 and Tandem's P/E ratio at -10.04. 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 2.21 while Tandem's P/B ratio is 0.38.

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 Tandem's is -0.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Medtronic's ROE at 8.64% and Tandem's ROE at -3.76%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $82.88 for Medtronic and £155.15 for Tandem. Over the past year, Medtronic's prices ranged from $75.96 to $92.68, with a yearly change of 22.01%. Tandem's prices fluctuated between £69.75 and £249.30, with a yearly change of 257.42%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.