Smith & Nephew vs Stryker Which Is a Smarter Choice?

Smith & Nephew and Stryker are two leading medical technology companies that are known for their innovative products and strong presence in the healthcare industry. Both companies have a strong track record of delivering solid financial performance and consistent growth. Investors looking to invest in the healthcare sector often consider both Smith & Nephew and Stryker as potential investment opportunities due to their strong market position and potential for future growth. It is important to carefully analyze each company's financials, product pipeline, and market position before making a decision on investing in their stocks.

Smith & Nephew or Stryker?

When comparing Smith & Nephew and Stryker, 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 Smith & Nephew and Stryker.

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. Smith & Nephew has a dividend yield of 3.03%, while Stryker has a dividend yield of 0.84%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Smith & Nephew reports a 5-year dividend growth of 0.43% year and a payout ratio of 106.94%. On the other hand, Stryker reports a 5-year dividend growth of 9.58% year and a payout ratio of 33.40%.

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 Smith & Nephew P/E ratio at 71.02 and Stryker's P/E ratio at 40.22. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Smith & Nephew P/B ratio is 4.15 while Stryker's P/B ratio is 7.17.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Smith & Nephew has seen a 5-year revenue growth of 1.28%, while Stryker's is 0.49%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Smith & Nephew's ROE at 5.84% and Stryker's ROE at 18.49%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $24.45 for Smith & Nephew and $376.14 for Stryker. Over the past year, Smith & Nephew's prices ranged from $23.65 to $31.72, with a yearly change of 34.12%. Stryker's prices fluctuated between $276.60 and $381.54, with a yearly change of 37.94%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.