ConforMIS (NASDAQ: CFMS) and Stryker Corporation (NYSE:SYK) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, profitability, institutional ownership, earnings and analyst recommendations.
Risk and Volatility
ConforMIS has a beta of 2.3, meaning that its share price is 130% more volatile than the S&P 500. Comparatively, Stryker Corporation has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.
This is a summary of recent recommendations and price targets for ConforMIS and Stryker Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ConforMIS currently has a consensus price target of $8.25, suggesting a potential upside of 133.71%. Stryker Corporation has a consensus price target of $145.31, suggesting a potential upside of 0.99%. Given ConforMIS’s higher possible upside, equities research analysts clearly believe ConforMIS is more favorable than Stryker Corporation.
Stryker Corporation pays an annual dividend of $1.70 per share and has a dividend yield of 1.2%. ConforMIS does not pay a dividend. Stryker Corporation pays out 37.9% of its earnings in the form of a dividend. Stryker Corporation has raised its dividend for 6 consecutive years.
Earnings & Valuation
This table compares ConforMIS and Stryker Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ConforMIS||$79.26 million||2.00||-$54.78 million||($1.36)||-2.60|
|Stryker Corporation||$11.96 billion||4.50||$3.29 billion||$4.48||32.12|
Stryker Corporation has higher revenue and earnings than ConforMIS. ConforMIS is trading at a lower price-to-earnings ratio than Stryker Corporation, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
34.1% of ConforMIS shares are held by institutional investors. Comparatively, 74.2% of Stryker Corporation shares are held by institutional investors. 9.6% of ConforMIS shares are held by company insiders. Comparatively, 7.4% of Stryker Corporation 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.
This table compares ConforMIS and Stryker Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Stryker Corporation beats ConforMIS on 12 of the 16 factors compared between the two stocks.
ConforMIS, Inc. is a medical technology company. The Company uses its iFit Image-to-Implant technology platform to develop, manufacture and sell joint replacement implants, which are individually sized and shaped, to fit each patient’s anatomy. The Company’s iFit technology platform is applicable to various joints. It offers a line of customized knee implants designed to restore the natural shape of a patient’s knee. It offers iTotal CR, which is a total knee replacement implant. Its iFit technology platform consists of three elements, including iFit Design, its algorithms and computer software that is used to design customized implants and associated single-use patient-specific instrumentation referred to as iJigs, based on computed tomography scans of the patient and to prepare a surgical plan customized for the patient (iView); iFit Printing, which is a three-dimensional printing technology used to manufacture iJigs, and iFit Just-in-Time manufacturing and delivery capabilities.
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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