Subscribe Now
Forgot Password?

Weekly News, Analysis, and Commentary

Power Rankings

Power Rankings: August 25th, 2014

Robin Young’s Entirely Subjective Ordering of Public Orthopedic Companies

This Week: After last week’s central banker soiree in Jackson Hole economists are predicting 3.5% GDP growth in the second half of 2014. If correct, that’s great news for all aspects of orthopedics. More employment, more insurance, busy clinics. Capital market investors, however, have not yet migrated in a meaningful way to small cap, innovative companies. It’s still corporate M&A spending that, at the margins, is driving stock liquidity.

Rank Last Week Company TTM Op
Margin
30-Day Change
Comment
1
1
Integra LifeSciences
12.57%
6.27%
IART wants to divest of its spine business. Makes strategic sense. But who will buy?
2
3
Symmetry Medical
6.55
3.14
Earnings jump 60% for Q2 2014. Not too shabby—$450 million sale of OEM to Tecomet closes later this year.
3
2
Stryker
11.52
0.40
Triumph of hope over experience—the rumor that SYK would buy SNN. Yes, it looks good on paper. But the chemistry seems to be missing.
4
4
NuVasive
8.01
4.16
While IART has the #1 earnings change expectation, NUVA is #2. After last quarter’s performance, we can see why.
5
6
Exactech
10.26
(1.23)
Whenever Wall Street rediscovers small cap orthopedic stocks, EXAC will be at the front of the class.
6
5
Medtronic
28.84
0.35
Last quarter’s spine sales were down yet again. OUS may have been stronger than U.S. sales. For FY2015, management is predicting YOY spine sales growth.
7
7
Johnson & Johnson
26.58
0.89
Honestly, JNJ is overpriced at these prices. Growth? Only blockbuster products are able to move the needle. At $60, bargain. At $103, premium priced.
8
8
Orthofix
7.46
(2.37)
Now comes the delisting letter from NASDAQ for failure to timely file quarterly results. Again.
9
9
Zimmer
29.12
(3.56)
ZMH keeps drifting south even as the Biomet merger comes closer to completion. Hmm…opportunity?
10
10
MicroPort Scientific
36.16
(3.07)
In terms of valuation, MicroPort is the 8th least expensive company in all of orthopedics. Way undervalued.

Top Performers Last 30 Days

Company Symbol
Price
Mkt Cap
30-Day Chg
1 LDR Holding Corp. LDRH $27.32 $709 23.62%
2 Aurora Spine ASG $1.87 $29 20.41%
3 RTI Biologics Inc RTIX $4.86 $276 13.29%
4 CryoLife CRY $10.23 $286 11.68%
5 Alphatec Holdings ATEC $1.53 $150 11.68%
6 Integra LifeSciences IART $50.70 $1,653 6.27%
7 MiMedx Group MDXG $6.97 $737 4.81%
8 NuVasive NUVA $35.53 $1,669 4.16%
9 Symmetry Medical SMA $9.19 $345 3.14%
10 Johnson & Johnson JNJ $103.10 $290,772 0.89%

Worst Performers Last 30 Days

Company Symbol
Price
Mkt Cap
30-Day Chg
1 Baxano Surgical Inc BAXS $0.36 $18 -27.95%
2 Bacterin Intl Holdings BONE $4.76 $32 -26.20%
3 Globus Medical GMED $18.70 $1,765 -20.22%
4 K2M Group Holdings KTWO $13.99 $519 -10.32%
5 Wright Medical WMGI $29.67 $1,496 -7.51%
6 TiGenix TIG.BR $0.71 $114 -5.53%
7 Zimmer Holdings ZMH $99.49 $16,806 -3.56%
8 Smith & Nephew SNN $87.21 $15,575 -3.44%
9 MicroPort Scientific 853 $0.61 $866 -3.07%
10 ConMed CNMD $37.62 $1,029 -2.89%

Lowest Price / Earnings Ratio (TTM)

Company Symbol
Price
Mkt Cap
P/E
1 Medtronic MDT $63.59 $63,348 16.42
2 Johnson & Johnson JNJ $103.10 $290,772 17.69
3 Zimmer Holdings ZMH $99.49 $16,806 17.82
4 Globus Medical GMED $18.70 $1,765 19.21
5 Exactech EXAC $23.37 $321 19.44

Highest Price / Earnings Ratio (TTM)

Company Symbol
Price
Mkt Cap
P/E
1 Orthofix OFIX $33.35 $615 278.22
2 NuVasive NUVA $35.53 $1,669 67.93
3 Symmetry Medical SMA $9.19 $345 47.14
4 MicroPort Scientific 853 $0.61 $866 34.02
5 CryoLife CRY $10.23 $286 30.73

Lowest P/E to Growth Ratio (Earnings Estimates)

Company Symbol
Price
Mkt Cap
PEG
1 CryoLife CRY $10.23 $286 1.02
2 Exactech EXAC $23.37 $321 1.08
3 Globus Medical GMED $18.70 $1,765 1.43
4 ConMed CNMD $37.62 $1,029 1.64
5 Zimmer Holdings ZMH $99.49 $16,806 2.16

Highest P/E to Growth Ratio (Earnings Estimates)

Company Symbol
Price
Mkt Cap
PEG
1 Orthofix OFIX $33.35 $615 15.12
2 NuVasive NUVA $35.53 $1,669 5.55
3 Symmetry Medical SMA $9.19 $345 3.93
4 Smith & Nephew SNN $87.21 $15,575 2.95
5 Integra LifeSciences IART $50.70 $1,653 2.56

Lowest Price to Sales Ratio (TTM)

Company Symbol
Price
Mkt Cap
PSR
1 Alphatec Holdings ATEC $1.53 $150 0.73
2 Symmetry Medical SMA $9.19 $345 0.86
3 Baxano Surgical Inc BAXS $0.36 $18 0.88
4 Bacterin Intl Holdings BONE $4.76 $32 0.93
5 RTI Biologics Inc RTIX $4.86 $276 1.14

Highest Price to Sales Ratio (TTM)

Company Symbol
Price
Mkt Cap
PSR
1 TiGenix TIG.BR $0.71 $114 19.97
2 MiMedx Group MDXG $6.97 $737 9.30
3 LDR Holding Corp. LDRH $27.32 $709 6.36
4 MicroPort Scientific 853 $0.61 $866 5.67
5 Wright Medical WMGI $29.67 $1,496 5.56

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