Stryker vs Medtronic Which Performs Better?

Stryker Corporation and Medtronic Inc. are two major players in the medical device industry, with each company offering a wide range of products and services. Investors may be interested in comparing the performance of their stocks to make informed investment decisions. Stryker has a strong track record of growth and innovation, while Medtronic is known for its emphasis on research and development. Both companies have a global presence and continue to lead the way in developing cutting-edge medical technologies.

Stryker or Medtronic?

When comparing Stryker 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 Stryker 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. Stryker has a dividend yield of 0.85%, while Medtronic has a dividend yield of 3.37%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Stryker reports a 5-year dividend growth of 9.58% year and a payout ratio of 33.40%. 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 Stryker P/E ratio at 39.77 and Medtronic's P/E ratio at 24.67. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Stryker P/B ratio is 7.09 while Medtronic's P/B ratio is 2.18.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Stryker has seen a 5-year revenue growth of 0.49%, while Medtronic's is 0.06%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Stryker's ROE at 18.49% and Medtronic's ROE at 8.64%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $373.15 for Stryker and $81.89 for Medtronic. Over the past year, Stryker's prices ranged from $285.79 to $398.20, with a yearly change of 39.33%. 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.