Stryker (NYSE: SYK) and Orthopediatrics (NASDAQ:KIDS) are both healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Dividends

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Stryker pays an annual dividend of $1.88 per share and has a dividend yield of 1.1%. Orthopediatrics does not pay a dividend. Stryker pays out 38.4% of its earnings in the form of a dividend. Stryker has increased its dividend for 7 consecutive years.

Profitability

This table compares Stryker and Orthopediatrics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stryker 8.20% 24.56% 11.53%
Orthopediatrics N/A N/A N/A

Insider & Institutional Ownership

75.7% of Stryker shares are held by institutional investors. Comparatively, 32.5% of Orthopediatrics shares are held by institutional investors. 7.4% of Stryker shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Stryker and Orthopediatrics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stryker $12.44 billion 5.03 $1.02 billion $4.90 34.10
Orthopediatrics $45.62 million 4.77 -$29.50 million N/A N/A

Stryker has higher revenue and earnings than Orthopediatrics.

Analyst Ratings

This is a summary of current recommendations and price targets for Stryker and Orthopediatrics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stryker 1 7 14 0 2.59
Orthopediatrics 0 0 4 0 3.00

Stryker currently has a consensus target price of $163.74, indicating a potential downside of 2.02%. Orthopediatrics has a consensus target price of $23.67, indicating a potential upside of 37.12%. Given Orthopediatrics’ stronger consensus rating and higher possible upside, analysts plainly believe Orthopediatrics is more favorable than Stryker.

Summary

Stryker beats Orthopediatrics on 11 of the 14 factors compared between the two stocks.

About Stryker

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.

About Orthopediatrics

OrthoPediatrics Corp. is a medical device company. The Company designs, develops and commercializes orthopedic implants and instruments to meet the specialized needs of pediatric surgeons and their patients. It operates through the OrthoPediatrics segment, which designs, develops and markets implants and devices for children with orthopedic problems. Its products include RESPONSE Spinal Deformity System, PediNail Intramedullary Nail System, PediLoc Plating Systems, ACL Reconstruction System, Locking Cannulated Blade (LCB) plate system, Locking Proximal Femur (LPF) plate system, PediFlex Flexible Nailing System, PediFrag, PediLoc Extension Osteotomy Plate (PLEO), PediLoc Femur Locking Plate System, PediLoc Tibia Locking Plate System, PediPlates system and Spica Table. It markets over 20 surgical systems that serve approximately three categories within pediatric orthopedic market, including trauma and deformity, complex spine and anterior cruciate ligament reconstruct

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