Smith & Nephew plc (NYSE: SNN) is one of 19 public companies in the “Medical Devices & Implants” industry, but how does it weigh in compared to its peers? We will compare Smith & Nephew plc to related businesses based on the strength of its risk, institutional ownership, valuation, analyst recommendations, earnings, profitability and dividends.
Institutional and Insider Ownership
6.5% of Smith & Nephew plc shares are owned by institutional investors. Comparatively, 42.4% of shares of all “Medical Devices & Implants” companies are owned by institutional investors. 1.0% of Smith & Nephew plc shares are owned by company insiders. Comparatively, 9.6% of shares of all “Medical Devices & Implants” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Smith & Nephew plc and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Smith & Nephew plc||13.87%||15.84%||8.74%|
|Smith & Nephew plc Competitors||-94.04%||-85.91%||-27.88%|
Smith & Nephew plc pays an annual dividend of $0.61 per share and has a dividend yield of 1.7%. Smith & Nephew plc pays out 31.1% of its earnings in the form of a dividend. As a group, “Medical Devices & Implants” companies pay a dividend yield of 1.3% and pay out 39.8% of their earnings in the form of a dividend. Smith & Nephew plc has increased its dividend for 4 consecutive years. Smith & Nephew plc is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares Smith & Nephew plc and its peers gross revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Smith & Nephew plc||$4.67 billion||$784.00 million||18.18|
|Smith & Nephew plc Competitors||$1.67 billion||$207.58 million||56.77|
Smith & Nephew plc has higher revenue and earnings than its peers. Smith & Nephew plc is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Volatility and Risk
Smith & Nephew plc has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Smith & Nephew plc’s peers have a beta of 0.93, suggesting that their average share price is 7% less volatile than the S&P 500.
This is a breakdown of current ratings and target prices for Smith & Nephew plc and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Smith & Nephew plc||0||2||2||0||2.50|
|Smith & Nephew plc Competitors||109||727||1024||10||2.50|
Smith & Nephew plc currently has a consensus target price of $42.00, suggesting a potential upside of 17.88%. As a group, “Medical Devices & Implants” companies have a potential upside of 35.74%. Given Smith & Nephew plc’s peers higher possible upside, analysts plainly believe Smith & Nephew plc has less favorable growth aspects than its peers.
Smith & Nephew plc beats its peers on 7 of the 13 factors compared.
About Smith & Nephew plc
Smith & Nephew plc is a medical technology company. The Company is engaged in developing, manufacturing, marketing and selling medical devices and services. Its products and services include Sports Medicine Joint Repair, Arthroscopic Enabling Technologies (AET), Trauma & Extremities, Other Surgical Businesses, Knee Implants, Hip Implants, Advanced Wound Care, Advanced Wound Bioactives and Advanced Wound Devices. The Sports Medicine Joint Repair franchise offers surgeons a range of instruments, technologies and implants necessary to perform minimally invasive surgery of the joints, including the repair of soft tissue injuries and degenerative conditions of the knee, hip and shoulder. The AET franchise offers an array of minimally invasive surgery-enabling systems and devices. The Trauma & Extremities franchise supports healthcare professionals with solutions used by surgeons to stabilize severe fractures, correct bone deformities, treat arthritis and heal soft tissue complications.
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