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Weekly News, Analysis, and Commentary

Power Rankings

Power Rankings: May 18th, 2015

Robin Young's Entirely Subjective Ordering of Public Orthopedic Companies

This Week: A correction to this bull market is coming—of that there is no doubt. The question is when. It has been 36 months since that last correction so we’re due. Many market timers are looking at this summer as the most likely moment for a bull market correction—which is a normal, even healthy part of every bull market. Otherwise, all fundamentals remain in place for a steady rise in ortho equity valuations for the foreseeable future.

Rank Last Week Company TTM Op
Margin
30-Day Change
Comment
1
3
Integra LifeSciences
13.74%
6.92%
So long as IART is this inexpensive—less than 20x p/e on future earnings, 2.3x sales—and investors are buying IART earns #1.
2
1
Stryker
22.78
3.49
SYK, the second best value in orthopedics and #2 in this week’s Power Rankings. Secret to SYK is that it is more than the sum of its parts.
3
2
NuVasive
9.30
7.20
There is a sense that NUVA’s fate is definitely in its own hands with that sales force and new product pipeline.
4
5
ConMed
10.41
12.25
What catalyst is attracting investors to CNMD? Both Northland Capital and Deutsche Bank initiated coverage.
5
7
Smith & Nephew
20.19
2.38
Syncera, SNN’s innovative supply chain model for hospitals and ASCs, promises to shrink 30,000 SKUs down to less than 1,000.
6
4
Globus Medical
30.82
(0.99)
GMED getting hit by the cockroaches of the legal world for letting KPMG go. Here’s a scoop. GMED was right and shareholders benefited.
7
9
Medtronic
27.92
(1.91)
Infuse (BMP-2) increased in sales yet again this quarter. What else is there to say?
8
8
Zimmer
30.35
(2.11)
Zimmer’s big win is the Persona knee, which added a few points to ZMH’s market share in 2014.
9
6
Johnson & Johnson
28.44
1.69
Ugly Q1 report. Lost market share across the board in large joints, spine and trauma.
10
NR
RTI Biologics
7.50
10.02
On the Power Rankings for the first time in years—seventh most attractive equity with a particularly attractive PSR ratio.

Top Performers Last 30 Days

Company Symbol
Price
Mkt Cap
30-Day Chg
1 ConMed CNMD $54.79 $1,512 12.25%
2 RTI Biologics Inc. RTIX $6.48 $372 10.02%
3 TiGenix TIG.BR $0.81 $130 9.99%
4 NuVasive NUVA $46.73 $2,260 7.20%
5 K2M Group Holdings KTWO $25.35 $1,005 7.05%
6 Integra LifeSciences IART $66.00 $2,174 6.92%
7 LDR Holding Corp. LDRH $39.27 $1,044 3.72%
8 Stryker SYK $95.51 $36,142 3.49%
9 Smith & Nephew SNN $35.29 $15,790 2.38%
10 Johnson & Johnson JNJ $102.30 $283,683 1.69%

Worst Performers Last 30 Days

Company Symbol
Price
Mkt Cap
30-Day Chg
1 Aurora Spine ASG $0.71 $14 -34.80%
2 Exactech EXAC $20.98 $293 -17.56%
3 Orthofix OFIX $32.54 $611 -13.43%
4 Bacterin Intl Holdings BONE $3.70 $26 -9.76%
5 MicroPort Scientific 853 $0.52 $742 -7.74%
6 Tornier N.V. TRNX $25.53 $1,251 -3.51%
7 Alphatec Holdings ATEC $1.37 $137 -2.14%
8 Zimmer Holdings ZMH $113.18 $19,286 -2.11%
9 Medtronic MDT $76.42 $108,904 -1.91%
10 CryoLife CRY $10.32 $292 -1.81%

Lowest Price / Earnings Ratio (TTM)

Company Symbol
Price
Mkt Cap
P/E
1 Johnson & Johnson JNJ $102.30 $283,683 17.25
2 Exactech EXAC $20.98 $293 18.09
3 Medtronic MDT $76.42 $108,904 19.11
4 Globus Medical GMED $25.12 $2,384 19.24
5 Zimmer Holdings ZMH $113.18 $19,286 19.46

Highest Price / Earnings Ratio (TTM)

Company Symbol
Price
Mkt Cap
P/E
1 MiMedx Group MDXG $9.99 $1,085 99.90
2 NuVasive NUVA $46.73 $2,260 96.38
3 Orthofix OFIX $32.54 $611 95.68
4 CryoLife CRY $10.32 $292 54.94
5 RTI Biologics Inc. RTIX $6.48 $372 42.41

Lowest P/E to Growth Ratio (Earnings Estimates)

Company Symbol
Price
Mkt Cap
PEG
1 Globus Medical GMED $25.12 $2,384 1.57
2 CryoLife CRY $10.32 $292 1.83
3 Exactech EXAC $20.98 $293 2.03
4 ConMed CNMD $54.79 $1,512 2.15
5 Stryker SYK $95.51 $36,142 2.55

Highest P/E to Growth Ratio (Earnings Estimates)

Company Symbol
Price
Mkt Cap
PEG
1 MiMedx Group MDXG $9.99 $1,085 6.66
2 NuVasive NUVA $46.73 $2,260 6.31
3 Orthofix OFIX $32.54 $611 5.20
4 Smith & Nephew SNN $35.29 $15,790 4.92
5 Zimmer Holdings ZMH $113.18 $19,286 4.10

Lowest Price to Sales Ratio (TTM)

Company Symbol
Price
Mkt Cap
PSR
1 Alphatec Holdings ATEC $1.37 $137 0.66
2 Bacterin Intl Holdings BONE $3.70 $26 0.73
3 Exactech EXAC $20.98 $293 1.19
4 RTI Biologics Inc. RTIX $6.48 $372 1.38
5 Orthofix OFIX $32.54 $611 1.52

Highest Price to Sales Ratio (TTM)

Company Symbol
Price
Mkt Cap
PSR
1 TiGenix TIG.BR $0.81 $130 15.51
2 LDR Holding Corp. LDRH $39.27 $1,044 7.81
3 MiMedx Group MDXG $9.99 $1,085 7.78
4 K2M Group Holdings KTWO $25.35 $1,005 6.38
5 Medtronic MDT $76.42 $108,904 6.21

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