RTI Surgical (NASDAQ: RTIX) and Stryker Corporation (NYSE:SYK) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitabiliy, valuation, risk and earnings.

Profitability

This table compares RTI Surgical and Stryker Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RTI Surgical -6.85% 1.34% 0.62%
Stryker Corporation 14.22% 24.26% 11.36%

Earnings and Valuation

This table compares RTI Surgical and Stryker Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
RTI Surgical $275.45 million 1.18 $11.64 million ($0.39) -14.36
Stryker Corporation $11.96 billion 4.58 $3.29 billion $4.48 32.71

Stryker Corporation has higher revenue and earnings than RTI Surgical. RTI Surgical is trading at a lower price-to-earnings ratio than Stryker Corporation, indicating that it is currently the more affordable of the two stocks.

Dividends

Stryker Corporation pays an annual dividend of $1.70 per share and has a dividend yield of 1.2%. RTI Surgical does not pay a dividend. Stryker Corporation pays out 37.9% of its earnings in the form of a dividend. Stryker Corporation has increased its dividend for 6 consecutive years.

Institutional & Insider Ownership

68.5% of RTI Surgical shares are held by institutional investors. Comparatively, 74.1% of Stryker Corporation shares are held by institutional investors. 4.9% of RTI Surgical shares are held by insiders. Comparatively, 7.4% of Stryker Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

RTI Surgical has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500. Comparatively, Stryker Corporation has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for RTI Surgical and Stryker Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RTI Surgical 0 0 0 0 N/A
Stryker Corporation 3 6 10 0 2.37

Stryker Corporation has a consensus price target of $143.38, indicating a potential downside of 2.15%. Given Stryker Corporation’s higher possible upside, analysts clearly believe Stryker Corporation is more favorable than RTI Surgical.

Summary

Stryker Corporation beats RTI Surgical on 13 of the 16 factors compared between the two stocks.

About RTI Surgical

RTI Surgical, Inc. is engaged in producing orthopedic and other surgical implants that repair and promote the natural healing of human bone and other human tissues. The Company uses natural tissues, metals and synthetics process to produce its products. The Company’s business primarily consists of six categories, such as spine, sports medicine, ortho fixation, bone graft substitutes and general orthopedic (BGS and general orthopedic), dental and surgical specialties. It processes donated human musculoskeletal and other tissue, including bone, cartilage, tendon, ligament, fascia lata, pericardium, sclera and dermal tissue, and bovine and porcine animal tissue in producing allograft and xenograft implants utilizing BIOCLEANSE, TUTOPLAST and CANCELLE SP sterilization processes, and manufactures metal and synthetic implants for distribution to hospitals and surgeons. The Company distributes its implants and services in approximately 50 states and in over 45 countries across the world.

About Stryker Corporation

Stryker Corporation is a medical technology company. The Company offers a range of medical technologies, including orthopedic, medical and surgical, and neurotechnology and spine products. The Company’s segments include Orthopaedics; MedSurg; Neurotechnology and Spine, and Corporate and Other. The Orthopaedics segment includes reconstructive (hip and knee) and trauma implant systems and other related products. The MedSurg segment includes surgical equipment and surgical navigation systems; endoscopic and communications systems; patient handling, emergency medical equipment, intensive care disposable products; reprocessed and remanufactured medical devices, and other related products. The Neurotechnology and Spine segment includes neurovascular products, spinal implant systems and other related products. The Company’s products include implants, which are used in joint replacement and trauma surgeries, and other products that are used in a range of medical specialties.

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