Head-To-Head Review: Stryker (NYSE:SYK) versus United-Guardian (NASDAQ:UG)

Stryker (NYSE:SYK) and United-Guardian (NASDAQ:UG) 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, profitability, risk, valuation, earnings and analyst recommendations.

Institutional and Insider Ownership

77.1% of Stryker shares are held by institutional investors. Comparatively, 23.2% of United-Guardian shares are held by institutional investors. 4.6% of Stryker shares are held by company insiders. Comparatively, 29.0% of United-Guardian shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for Stryker and United-Guardian, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stryker	0	6	15	0	2.71
United-Guardian	0	1	0	0	2.00

Stryker currently has a consensus price target of $421.11, indicating a potential upside of 28.53%. Given Stryker’s stronger consensus rating and higher possible upside, analysts clearly believe Stryker is more favorable than United-Guardian.

Profitability

This table compares Stryker and United-Guardian’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stryker	12.92%	24.41%	11.25%
United-Guardian	19.97%	19.10%	16.37%

Valuation & Earnings

This table compares Stryker and United-Guardian”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stryker	$25.12 billion	5.00	$3.25 billion	$8.40	39.00
United-Guardian	$10.55 million	2.93	$2.11 million	$0.46	14.65

Stryker has higher revenue and earnings than United-Guardian. United-Guardian is trading at a lower price-to-earnings ratio than Stryker, indicating that it is currently the more affordable of the two stocks.

Dividends

Stryker pays an annual dividend of $3.52 per share and has a dividend yield of 1.1%. United-Guardian pays an annual dividend of $0.50 per share and has a dividend yield of 7.4%. Stryker pays out 41.9% of its earnings in the form of a dividend. United-Guardian pays out 108.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Stryker has raised its dividend for 32 consecutive years and United-Guardian has raised its dividend for 1 consecutive years.

Risk & Volatility

Stryker has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, United-Guardian has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Summary

Stryker beats United-Guardian on 12 of the 17 factors compared between the two stocks.

About Stryker

Stryker Corporation operates as a medical technology company. The company operates through two segments, MedSurg and Neurotechnology, and Orthopaedics and Spine. The Orthopaedics and Spine segment provides implants for use in total joint replacements, such as hip, knee and shoulder, and trauma and extremities surgeries. This segment also offers spinal implant products comprising cervical and thoracolumbar systems that include fixation, minimally invasive and interbody systems used in spinal injury, complex spine and degenerative therapies. The MedSurg and Neurotechnology segment offers surgical equipment, and surgical navigation systems, endoscopic and communications systems, patient handling, emergency medical equipment and intensive care disposable products, reprocessed and remanufactured medical devices, clinical communication and workflow solutions, and other medical device products that are used in various medical specialties, as well as patient and caregiver safety technologies. This segment also provides neurosurgical, neurovascular and craniomaxillofacial implant products, which include products used for minimally invasive endovascular procedures; products for brain and open skull based surgical procedures; orthobiologic and biosurgery products, such as synthetic bone grafts and vertebral augmentation products; minimally invasive products for the treatment of acute ischemic and hemorrhagic stroke; and craniomaxillofacial implant products, including cranial, maxillofacial, and chest wall devices, as well as dural substitutes and sealants. The company sells its products to doctors, hospitals, and other healthcare facilities through company-owned subsidiaries and branches, as well as third-party dealers and distributors in approximately 75 countries. Stryker Corporation was founded in 1941 and is headquartered in Portage, Michigan.

About United-Guardian

United-Guardian, Inc. manufactures and markets cosmetic ingredients, pharmaceuticals, medical lubricants, and proprietary specialty industrial products in the United States and internationally The company offers cosmetic ingredients, including LUBRAJEL, a line of water-based gel formulation for sensory enhancement, lubrication, and texture to personal care products; LUBRAJEL NATURAL for skin moisturizing; LUBRAJEL MARINE that develops natural products using naturally derived polymers; LUBRAJEL OlL NATURAL, which makes luxuriant textures without adding viscosity; LUBRAJEL TERRA, a multifunctional, moisturizing hydrogel products; LUBRASIL II SB, a formulation of LUBRAJEL; LUBRAJEL II XD; B-122, a powdered lubricant used in the manufacture of pressed powders, eyeliners, rouges, and industrial products; and ORCHID COMPLEX, an oil-soluble base for extract of fresh orchids used in fragrance products, such as perfumes and toiletries. Its medical lubricants comprise LUBRAJEL RR and RC, which are water-based lubricant gels for urinary catheters; LUBRAJEL MG to lubricate urinary catheters, pre-lubricated enema tips, and other medical devices; LUBRAJEL MGL, a medical lubricant with a lower viscosity medical lubricant; LUBRAJEL LC, LUBRAJEL BA, and LUBRAJEL FA, which are formulations for oral care; and LUBRAJEL FLUID to lubricate water-soluble products. The company's pharmaceutical products consist of RENACIDIN, a prescription drug to prevent and dissolve calcifications in urethral catheters and the urinary bladder; and CLORPACTIN WCS-90, an antimicrobial used in urology. Its industrial products include DESELEX, a sequestering and chelating agent used for manufacturing detergents; and THOROCLENS, a chlorine-based industrial cleanser. The company also conducts research and product development of cosmetic ingredients. The company was founded in 1942 and is based in Hauppauge, New York.