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Weekly News, Analysis, and Commentary

Power Rankings

Power Rankings: November 25th, 2014

Robin Young’s Entirely Subjective Ordering of Public Orthopedic Companies

This Week: The stock market continues to hit record highs and this week the small caps took center stage. We are in a bull market for stocks. How durable is this surge in buying? There is still a plenty of money on the sidelines. And this is the time of year (December to the end of January) when buying is typically strongest.

Rank Last Week Company TTM Op
Margin
30-Day Change
Comment
1
1
Stryker
11.52%
9.14%
De-risks with $1.4 billion litigation settlement. Rumors of bidding for SNN won’t die. In fact, they’re heating up.
2
3
Zimmer
29.12
10.26
Big jump for Big Blue. Zimmer spine had a great NASS. Showed up with an impressive, innovative line.
3
6
Medtronic
28.84
12.11
Wall Street broker Jefferies raising target price for MDT. Huge jump in price at MDT over last 30 days. And, oh yes, spine sales rose year-over-year.
4
4
NuVasive
8.01
22.70
Holy moly rocky! What a jump in valuation. Someone really wants to own a lot of this leader in spine.
5
5
Globus Medical
29.68
10.04
Normally, Globus’s valuation would look toppy to us. But earning 30 cents on every sales dollar justifies a 25 P/E.
6
2
ConMed
10.51
6.61
Despite a nice run this past month, CNMD is still the 3rd least expensive equity in orthopedics. What does 2015 hold for CNMD? Should be very interesting.
7
7
Smith & Nephew
19.92
10.47
Bloomberg and Barron’s are both reporting that Stryker is mulling a bid. For OTW, mergers are the gift that just keeps on giving. Go SYK go!
8
8
MicroPort
16.53
(8.64)
MicroPort’s equity marches to a different drummer. Too bad. Investors are missing one of the great strategic values in orthopedics.
9
9
Integra LifeSciences
12.57
(2.78)
What is IART morphing into? Spine business spinning off. As the least expensive equity in ortho, there is plenty of upside available.
10
10
Symmetry Medical
6.55
(6.73)
Most investors are waiting for the dust to settle from the proposed OEM solutions divestiture.

Top Performers Last 30 Days

Company Symbol
Price
Mkt Cap
30-Day Chg
1 RTI Biologics Inc RTIX $4.87 $277 36.80%
2 K2M Group Holdings KTWO $17.97 $667 24.53%
3 NuVasive 853 $43.40 $2,042 22.70%
4 MiMedx Group MDXG $10.52 $1,125 17.81%
5 Aurora Spine ASG $1.63 $26 17.74%
6 Tornier N.V. TRNX $26.19 $1,281 14.22%
7 Medtronic MDT $72.49 $71,297 12.11%
8 Smith & Nephew SNN $34.62 $15,460 10.47%
9 Zimmer Holdings ZMH $110.48 $18,710 10.26%
10 Globus Medical GMED $22.57 $2,211 10.04%

Worst Performers Last 30 Days

Company Symbol
Price
Mkt Cap
30-Day Chg
1 Baxano Surgical Inc BAXS $0.02 $1 -80.59%
2 Bacterin Intl Holdings BONE $2.91 $19 -37.55%
3 Wright Medical WMGI $28.45 $1,453 -9.71%
4 MicroPort Scientific 853 $0.48 $678 -8.64%
5 Symmetry Medical SMA $9.14 $343 -6.73%
6 Alphatec Holdings ATEC $1.38 $136 -5.48%
7 CryoLife CRY $9.81 $274 -4.01%
8 Integra LifeSciences IART $47.50 $1,557 -2.78%
9 Orthofix OFIX $28.15 $519 -2.60%
10 TiGenix TIG.BR $0.66 $105 -1.81%

Lowest Price / Earnings Ratio (TTM)

Company Symbol
Price
Mkt Cap
P/E
1 Johnson & Johnson JNJ $107.86 $301,912 17.96
2 Medtronic MDT $72.49 $71,297 18.50
3 Zimmer Holdings ZMH $110.48 $18,710 19.05
4 Exactech EXAC $21.86 $302 19.18
5 Integra LifeSciences IART $47.50 $1,557 22.53

Highest Price / Earnings Ratio (TTM)

Company Symbol
Price
Mkt Cap
P/E
1 MiMedx Group MDXG $10.52 $1,125 1048.96
2 RTI Biologics Inc RTIX $4.87 $277 291.20
3 Orthofix OFIX $28.15 $519 179.84
4 NuVasive NUVA $43.40 $2,042 112.02
5 Symmetry Medical SMA $9.14 $343 60.20

Lowest P/E to Growth Ratio (Earnings Estimates)

Company Symbol
Price
Mkt Cap
PEG
1 CryoLife CRY $9.81 $274 1.12
2 Exactech EXAC $21.86 $302 1.28
3 ConMed CNMD $41.91 $1,154 1.80
4 Globus Medical GMED $22.57 $2,211 1.83
5 Integra LifeSciences IART $47.50 $1,557 1.86

Highest P/E to Growth Ratio (Earnings Estimates)

Company Symbol
Price
Mkt Cap
PEG
1 MiMedx Group MDXG $10.52 $1,125 69.93
2 RTI Biologics Inc RTIX $4.87 $277 19.41
3 NuVasive NUVA $43.40 $2,042 9.80
4 Orthofix OFIX $28.15 $519 9.77
5 Symmetry Medical SMA $9.14 $343 5.02

Lowest Price to Sales Ratio (TTM)

Company Symbol
Price
Mkt Cap
PSR
1 Baxano Surgical Inc BAXS $0.02 $1 0.06
2 Bacterin Intl Holdings BONE $2.91 $19 0.56
3 Alphatec Holdings ATEC $1.38 $136 0.66
4 Symmetry Medical SMA $9.14 $343 0.86
5 RTI Biologics Inc RTIX $4.87 $277 1.10

Highest Price to Sales Ratio (TTM)

Company Symbol
Price
Mkt Cap
PSR
1 TiGenix TIG.BR $0.66 $105 18.41
2 MiMedx Group MDXG $10.52 $1,125 11.64
3 LDR Holding Corp. LDRH $33.35 $869 7.79
4 Wright Medical WMGI $28.45 $1,453 5.14
5 Globus Medical GMED $22.57 $2,211 4.80

PSR: Aggregate current market capitalization divided by aggregate sales and the calculation excluded the companies for which sales figures are not available.