Head-To-Head Analysis: Stryker (NYSE:SYK) versus PROCEPT BioRobotics (NASDAQ:PRCT)

PROCEPT BioRobotics (NASDAQ:PRCT) and Stryker (NYSE:SYK) are both healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.

Profitability

This table compares PROCEPT BioRobotics and Stryker’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PROCEPT BioRobotics	-32.53%	-30.62%	-22.10%
Stryker	14.43%	23.63%	11.39%

Risk & Volatility

PROCEPT BioRobotics has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, Stryker has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.

Valuation & Earnings

This table compares PROCEPT BioRobotics and Stryker”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PROCEPT BioRobotics	$308.05 million	3.69	-$95.57 million	($1.94)	-10.22
Stryker	$25.84 billion	4.37	$3.25 billion	$9.65	30.48

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

Institutional & Insider Ownership

89.5% of PROCEPT BioRobotics shares are owned by institutional investors. Comparatively, 77.1% of Stryker shares are owned by institutional investors. 4.0% of PROCEPT BioRobotics shares are owned by company insiders. Comparatively, 4.6% of Stryker shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for PROCEPT BioRobotics and Stryker, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PROCEPT BioRobotics	2	9	2	3	2.38
Stryker	0	7	16	1	2.75

PROCEPT BioRobotics presently has a consensus target price of $25.50, suggesting a potential upside of 28.63%. Stryker has a consensus target price of $362.36, suggesting a potential upside of 23.21%. Given PROCEPT BioRobotics’ higher probable upside, research analysts plainly believe PROCEPT BioRobotics is more favorable than Stryker.

Summary

Stryker beats PROCEPT BioRobotics on 11 of the 15 factors compared between the two stocks.

About PROCEPT BioRobotics

PROCEPT BioRobotics Corporation, a surgical robotics company, focuses on developing transformative solutions in urology in the United States and internationally. The company develops, manufactures, and sells AquaBeam Robotic System, an image-guided, surgical robotic system for use in minimally invasive urologic surgery with a focus on treating benign prostatic hyperplasia (BPH). It also designs Aquablation therapy for males suffering from lower urinary tract symptoms due to BPH. PROCEPT BioRobotics Corporation was incorporated in 2007 and is headquartered in San Jose, California.

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.