Medtronic or Intuitive Surgical: Which is the Better Buy After Earnings?

Asia's Tech News Daily

The future can’t arrive soon enough for these two medical device giants

I’ve been bullish on both Medtronic (NYSE:MDT) and Intuitive Surgical (NASDAQ:ISRG) at different points this year. However both stocks are under selling pressure even after each company delivered solid, if not spectacular earnings reports.

NYSE:MDT, NASDAQ:ISRG, disrupted by the global pandemic, bullish call, both the top and bottom lines, robotic-assisted endoscopy platform

Depositphotos.com contributor/Depositphotos.com – MarketBeat

Medtronic just reported earnings on November 23. The medical device company beat on earnings but missed on revenue. This was, as the company described it, based on fears of hospital schedules and staffing continuing to be disrupted by the global pandemic.

I was briefly correct on a bullish call I made on MDT stock after its earnings report in August. However, the stock is down 16% from its 52-week high and is now in the red for the year.

In the case of Intuitive Surgical, the stock jumped nearly 10% immediately after it beat on both the top and bottom lines. However, since then ISRG stock has given up almost all of those gains.  Still, the stock is up 23% for the year which is roughly the same as the S&P 500.

Intuitive Surgical: A Pure Play on Robotic Surgery

The bullish case for Intuitive Surgical centers around the company’s DaVinci System, the first FDA-approved robotic-assisted, minimally invasive surgical system. The company says the DaVinci system has performed over 8.5 million procedures. And it has sold the system in 67 countries including in all of the 50 states.

The company’s other offering is Ion – a robotic-assisted endoscopy platform that can find small, hard-to-reach lung nodules that can help detect lung cancer.

Intuitive Surgical has over 4,000 patents which is protecting its intellectual property. And, at a price tag between $500,000 and $2.5 million, once a hospital or medical center installs the DaVinci system, it becomes cost prohibitive to replace it. This is reflected in the company’s net margin which is slightly over 30% as of this writing.

Medtronic: A Leader in Medical Devices

Medtronic is a leader in the sale of medical devices and technology. The company sells to hospitals, physicians, clinicians and directly to patients. Although the company had a difficult year in 2020 as many hospitals were shut down at the beginning of the pandemic, the company had a banner year in ventilator sales. And as those sales have trailed off this year, Medtronic has seen its other categories come back strongly. And the company has recently thrown in its hat in the robotic-assisted surgery sector with the launch of its Hugo system.

The bad news is that, for all of its promise, the field of robotic surgery is still a slow growing sector and will continue to add competitors. The good news is that, as long-term stocks, I believe the sector is large enough for both companies.

Which is the Better Buy?

The issue for me is about growth potential. And while both companies have long-term potential, I like Medtronic simply because it has more ways to generate revenue.

In terms of valuation, both stocks are a bit expensive with price-to-earnings (P/E) ratios above their respective sector averages. And this is after Intuitive Surgical’s 3-for-1 stock split earlier this year. However, with a P/E ratio of 39.64 Medtronic is trading at a lower price-to-earnings ratio relative to its sector average of 30.16 than Intuitive Surgical which has a P/E ratio of 72.50 compared to its sector average of 25.64. This is one reason I give the nod to Medtronic.

Another reason is that the company has more ways to generate revenue in what may be a tough environment. And when considering these stocks, it’s impossible to ignore Medtronic’s status as a Dividend Aristocrat. The company has increased its dividend in each of the last 44 years.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

Compensation for crumbling homes to cost Ireland 2.2 billion euros

A new development under construction on Dominick Street Lower, faces old council flats in Dublin DUBLIN (Reuters) – Ireland will provide 2.2 billion euros ($2.5 billion) to help repair or ... Read more »

FBI can gain ‘limited' access to private WhatsApp and Apple iMessage conversations, document claims

(AFP via Getty Images) A new document from the Federal Bureau of Investigation has revealed the extent of the data they can collect from the most popular messaging apps like ... Read more »

Entrepreneurial Burnout: 6 Ways to Avoid And Overcome It

Burnout became an especially painful issue during the pandemic when the majority of people worked from home, finding it difficult to draw the line between work and private life. However, ... Read more »

ViacomCBS to sell iconic Studio Center for $1.85 billion

FILE PHOTO: ViacomCBS headquarters in New York, New York (Reuters) – ViacomCBS Inc, said on Tuesday it would sell CBS Studio Center, where the iconic sitcom “Seinfeld” was shot, for ... Read more »

WTO seeks deals in early 2022 despite postponing major meeting

A logo is pictured on the WTO in Geneva GENEVA (Reuters) – The World Trade Organization should be able to wrap up negotiations on fishing subsidies and a response to ... Read more »

Forget the "New Normal." There's No Normal in Marketing.

Over the past 18 months, companies navigating the pandemic have dealt with numerous changes to seemingly every facet of work. Beyond shifts in daily routines, work lives, and social behavior, ... Read more »

This Crypto-Fueled Internet Collective Raised More Than $40 Million to Buy a Rare Copy of the Constitution

The United States Constitution is more than just another document: It’s the foundation upon which this entire country has been built. In the most significant possible sense, it’s what attempts to ... Read more »

Inflation in eurozone soars to 4.9% – highest on record

Photograph: François Lenoir/Reuters Some investors accuse European Central Bank to allow inflation to run out of control Inflation across the 19-member eurozone soared to 4.9% this month, outstripping City forecasts ... Read more »

Your Top 4 Questions About 2022, Answered By the World's Top Superforecasters

You may have read our story about the forecasting company Good Judgment and its worldwide team of superforecasters. We wanted to put their expertise to use for our readers, so we asked ... Read more »

You Can't Do Everything. So Do the Best With What You Have.

Repeat after me: “I will do the best work with the resources available.” Nigel Parry This has become my mantra. It isn’t sexy. It doesn’t make for a great motivational ... Read more »

Why Jim Cramer Thinks Small Business Owners Can Do More Hiring Than Firing In 2022

When I look at small, private businesses,” says Jim Cramer, “I love to hear expansion plans. It is so exciting to me to hear expansion plans.” He believes the future ... Read more »

Meet the Elite Team of Superforecasters Who Have Turned Future-Gazing Into a Science

Before January 1, 2022, will the United States Olympic Committee announce that it is boycotting the 2022 Olympics? Nicolás Ortega I am in a virtual workshop that will test my ... Read more »

5 Things the Future Holds, According to the World's Most Elite Superforecasters

You may have read our story about the forecasting company Good Judgment and its worldwide team of superforecasters. Now it’s time to put them to the test. Nicolás Ortega Their crystal ball ... Read more »

Ofgem chief Brearley: Energy suppliers need to be more resilient

The UK’s energy suppliers need to be more resilient, the boss of Ofgem has said after more than two dozen companies collapsed in the last three months. Jonathan Brearley also ... Read more »

Here's why unemployment claims hit their lowest level since 1969

Recruiters speak with potential applicants during a job fair in Leesburg, Virginia, on Oct. 21, 2021. ANDREW CABALLERO-REYNOLDS | AFP | Getty Images Claims for unemployment benefits dipped to their ... Read more »

Ofgem promises tougher stress tests for energy suppliers

Photograph: Rosemary Roberts/Alamy Regulation will need to ‘go much further’ following string of provider collapses, says regulator The energy regulator has promised to put in place tougher stress tests for ... Read more »

Exclusive-Shell eyes return to Libya with oil, gas, solar investments

FILE PHOTO: A logo for Shell is seen on a garage forecourt in central London By Ron Bousso LONDON (Reuters) – Royal Dutch Shell is considering a return to Libya ... Read more »

BoE's Mann says Omicron could hit consumer confidence

FILE PHOTO: People walk past the Bank of England, in London LONDON (Reuters) – BoE policymaker Catherine Mann said on Tuesday that the newly detected Omicron coronavirus variant could hit ... Read more »

6 Key Questions You Should Always Ask Before Investing in a Commercial Real-Estate Property

Commercial real estate is one of the most reliable investment opportunities. Many people build long-term wealth through their property investments. Cyrus McCormick, one of the wealthiest Chicagoans in history, made ... Read more »

The Use Of Recycled Plastics In Packaging Of Food And Drinks Needs To Be Re-Deliberated: Experts

LawWiser, India’s first video-only knowledge-sharing platform for the legal community, today released a consultation paper on ‘The Dilemma of Recycling Plastics in India’. The objective of this consultation paper is ... Read more »

TSB to close quarter of branches in ‘another hammer blow' to UK high street

Photograph: Neil Hall/Reuters TSB Bank is closing a further 70 branches – a quarter of its network – in a move described by campaigners as “yet another hammer blow” to ... Read more »

Base rate and mortgages: all eyes on December

Unsplash ( ) While the Bank of England base rate remains at steady low of 0.1%, the prospect of continued rock-bottom interest rates is fast diminishing. Inflation – as measured ... Read more »

Factbox-Key ECB comments in lead up to crucial Dec 16 meeting

FILE PHOTO: ECB President Lagarde takes part in a news conference, in Frankfurt FRANKFURT (Reuters) – The following are key comments by ECB policymakers in the run up to a ... Read more »

Waiting to talk finance with an aging parent in cognitive decline is a mistake, experts say

Camille Tokerud Photography Inc. | Stone | Getty Images Your elderly mother is getting forgetful and confused. What do you do now? “Waiting until a senior's decline is evident may ... Read more »

Freetrade launching in Europe: Will it become top dog?

© Provided by This Is Money MailOnline logo Viktor Nebehaj’s first encounter with Freetrade came via a Crowdcube funding campaign. In a bold move, he emptied his bank accounts to ... Read more »

Triterras (TRIT) Sees Hammer Chart Pattern: Time to Buy?

Triterras, Inc. TRIT has been struggling lately, but the selling pressure may be coming to an end soon. That is because TRIT recently saw a Hammer Chart Pattern which can ... Read more »

Is It Good Public Policy to Prop Up the Stock Market?

Should policymakers prop up the stock market when it appears to be in danger of crashing down? PIX1861 / Pixabay – Valuewalk Q3 2021 hedge fund letters, conferences and more ... Read more »

SM Energy (SM) Sees Hammer Chart Pattern: Time to Buy?

SM Energy Company SM has been struggling lately, but the selling pressure may be coming to an end soon. That is because SM recently saw a Hammer Chart Pattern which ... Read more »

Bull of the Day: Tyson Foods (TSN)

Tyson Foods (TSN) is a Zacks #1 (Strong Buy) that is the biggest U.S. chicken company. Tyson produces, distributes and markets chicken, beef, pork as well as prepared foods. – ... Read more »

4 Grocery Stocks to Buy as Omicron Variant Raises Fresh Fears

The coronavirus pandemic is far from over. Just when people were feeling confident after vaccination and stepping out of their homes or planning vacations, the Omicron variant of the coronavirus ... Read more »

Bear of the Day: Cracker Barrel Old Country Store (CBRL)

Cracker Barrel (CBRL) is a Zacks Rank #5 (Strong Sell) that is engaged in the ownership and operation of full-service restaurants with a restaurant and a retail store in the ... Read more »

2 Top Intimate Apparel Stocks to Buy, 2 to Sell

After suffering a downturn last year, the intimate apparel sector is in a rebuilding phase. The expansion of digital platforms, increase in consumer spending and pent-up demand for customized and ... Read more »

Romeo Power (RMO) Sees Hammer Chart Pattern: Time to Buy?

Romeo Power, Inc. RMO has been struggling lately, but the selling pressure may be coming to an end soon. That is because RMO recently saw a Hammer Chart Pattern which ... Read more »

Tyson Foods, Cracker Barrel, NIO, Royal Dutch Shell and Tesla highlighted as Zacks Bull and Bear of the Day

For Immediate Release Chicago, IL – November 30, 2021 – Zacks Equity Research Shares of Tyson Foods, Inc. TSN as the Bull of the Day, Cracker Barrel Old Country Store, ... Read more »

Buy This Tech Stock on the Dip Before Earnings for Big Growth?

Veeva Systems Inc. VEEV offers cloud-based solutions for the pharmaceutical and life sciences industries. The stock has crushed the broader tech sector over the last five years and its growth ... Read more »

Why You Should Add Kronos Worldwide (KRO) to Your Portfolio

Kronos Worldwide, Inc.’s KRO stock looks promising at the moment. The company’s shares have gained around 9% over the past three months. We are positive on the company’s prospects and ... Read more »

Beam Global (BEEM) Sees Hammer Chart Pattern: Time to Buy?

Beam Global BEEM has been struggling lately, but the selling pressure may be coming to an end soon. That is because BEEM recently saw a Hammer Chart Pattern which can ... Read more »

Zacks.com featured highlights include: Home Depot, CDW Corp, Landstar System and KLA Corp

For Immediate Release Chicago, IL – November 30, 2021 – Stocks in this week’s article are The Home Depot, Inc. HD, CDW Corporation CDW, Landstar System, Inc. LSTR and KLA ... Read more »

Why I Burned Down (And Rebuilt) My Online Business In 100 Days

Two steps forward, five steps back, one-and-a-half cartwheels, throw your back out, and then do it all over again tomorrow. That’s how this entrepreneurship thing works, right? If your answer ... Read more »

Lumos Alternate Investment, Gruhas Proptech To Raise INR 500 Crore Realty Fund

Gruha Proptech LLP and  Lumos Alternate Investment Advisors Pvt Ltd (Lumos) have joined hands to raise INR 500 crore for a real estate fund, focused on structured debt, last-mile funding ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic