RTI Surgical (NASDAQ: RTIX) and St Jude Medical (NYSE:STJ) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.
Insider & Institutional Ownership
70.0% of RTI Surgical shares are held by institutional investors. Comparatively, 82.7% of St Jude Medical shares are held by institutional investors. 4.9% of RTI Surgical shares are held by company insiders. Comparatively, 4.8% of St Jude Medical shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares RTI Surgical and St Jude Medical’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|RTI Surgical||$279.95 million||0.94||$15.45 million||($0.38)||-11.71|
|St Jude Medical||N/A||N/A||N/A||$2.28||35.45|
RTI Surgical has higher revenue and earnings than St Jude Medical. RTI Surgical is trading at a lower price-to-earnings ratio than St Jude Medical, indicating that it is currently the more affordable of the two stocks.
This table compares RTI Surgical and St Jude Medical’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|St Jude Medical||14.14%||19.40%||6.75%|
Risk & Volatility
RTI Surgical has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500. Comparatively, St Jude Medical has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.
This is a summary of recent recommendations and price targets for RTI Surgical and St Jude Medical, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|St Jude Medical||0||2||1||0||2.33|
St Jude Medical has a consensus target price of $76.00, suggesting a potential downside of 5.96%. Given St Jude Medical’s higher probable upside, analysts clearly believe St Jude Medical is more favorable than RTI Surgical.
St Jude Medical pays an annual dividend of $1.24 per share and has a dividend yield of 1.5%. RTI Surgical does not pay a dividend. St Jude Medical pays out 54.4% of its earnings in the form of a dividend. RTI Surgical has increased its dividend for 6 consecutive years.
St Jude Medical beats RTI Surgical on 8 of the 13 factors compared between the two stocks.
RTI Surgical Company Profile
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.
St Jude Medical Company Profile
St. Jude Medical, Inc. is focused on the development, manufacture and distribution of cardiovascular medical devices for the global cardiac rhythm management, cardiovascular and atrial fibrillation therapy areas, and interventional pain therapy and neurostimulation devices for the management of chronic pain and movement disorders. The Company’s product categories include tachycardia implantable cardioverter defibrillator systems; atrial fibrillation products (electrophysiology introducers and catheters, advanced cardiac mapping, navigation and recording systems and ablation systems); bradycardia pacemaker systems; vascular products (vascular closure products, pressure measurement guidewires, optical coherence tomography imaging products, vascular plugs, heart failure monitoring devices and other vascular accessories); structural heart products (heart valve replacement and repair products and structural heart defect devices); neuromodulation products, and Thoratec products.
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