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Weekly News, Analysis, and Commentary

Power Rankings

Power Rankings: October 20th, 2014

Robin Young’s Entirely Subjective Ordering of Public Orthopedic Companies

This Week: Fact: More insured workers, rising premium income at payers, costs are coming down and, as a result, demand for orthopedic implants is rising with conviction. Piper’s Matt Miksic makes the call: “Our survey of 50 orthopaedic surgeons’ points to another strong finish in 2014, and stable expectations for patient behavior (i.e., deferrals). All indications point to strong results from ZMH, ATEC, BAX, CNMD, GMED, IART, JNJ KTWO LDRH, NUVA, SMA, SNN, SYK and TRNX”

Rank Last Week Company TTM Op
Margin
30-Day Change
Comment
1
1
Symmetry Medical
6.55%
2.44%
SMA seems immune to the general market malaise due to its sale of the OEM solutions.
2
2
Stryker
11.52
(4.36)
Remember fundamentals? Sales, earnings. You know—the reason we’re in business. Major ortho is about to report its best Q3 in years.
3
5
Zimmer
29.12
(6.20)
There is a strengthening tail wind to ortho. It is here now. ZMH buying BMET is like raising the big sail on the clipper ship.
4
10
ConMed
10.51
2.45
No company can swing with improving economic conditions more than CNMD. That, plus new management, has investors excited.
5
NR
MicroPort
16.53
6.28
Top performer this week and that purchase of Wright’s large joint business looks really smart now.
6
6
Integra LifeSciences
12.57
(4.10)
Still the cheapest overall equity in orthopedics. Three things can change that for IART: sales growth, better profit margins or both.
7
3
NuVasive
8.01
(6.53)
Brean Capital upgrades. But on a valuation basis, spine companies are generally expensive.
8
7
Globus Medical
29.68
(0.81)
GMED is the most expensive equity on the Power Rankings. But with 30% operating margins, GMED qualifies as a premium equity.
9
4
Medtronic
28.84
(6.05)
The Shire tax inversion deal falls apart. Wall Street is starting to have doubts about MDT/COV.
10
8
Exactech
10.26
(14.74)
Overreaction by the market. How do you lose nearly 15% of your value but nothing fundamentally has changed?

Top Performers Last 30 Days

Company Symbol
Price
Mkt Cap
30-Day Chg
1 LDR Holding Corp LDRH $33.30 $865 18.93%
2 MiMedx Group MDXG $8.29 $876 16.27%
3 MicroPort Scientific 853 $0.52 $733 6.28%
4 CryoLife CRY $10.15 $283 3.57%
5 K2M Group Holdings KTWO $14.66 $544 3.39%
6 ConMed CNMD $39.31 $1,075 2.45%
7 Symmetry Medical SMA $9.64 $362 2.44%
8 Globus Medical GMED $19.56 $1,846 -0.81%
9 Wright Medical WMGI $30.51 $1,539 -3.88%
10 Integra LifeSciences IART $48.20 $1,571 -4.10%

Worst Performers Last 30 Days

Company Symbol
Price
Mkt Cap
30-Day Chg
1 Baxano Surgical Inc BAXS $0.12 $6 -58.79%
2 RTI Biologics Inc RTIX $3.72 $211 -26.63%
3 Alphatec Holdings ATEC $1.45 $142 -22.46%
4 Aurora Spine ASG $1.47 $23 -20.22%
5 Bacterin Intl Holdings BONE $4.02 $27 -19.44%
6 Exactech EXAC $20.48 $282 -14.74%
7 Orthofix OFIX $28.04 $517 -12.73%
8 Smith & Nephew SNN $30.42 $13,591 -10.94%
9 TiGenix TIG.BR $0.65 $104 -10.37%
10 Johnson & Johnson JNJ $98.70 $278,362 -7.05%

Lowest Price / Earnings Ratio (TTM)

Company Symbol
Price
Mkt Cap
P/E
1 Medtronic MDT $61.99 $60,720 15.93
2 Johnson & Johnson JNJ $98.70 $278,362 16.44
3 Globus Medical GMED $19.56 $1,846 16.60
4 Zimmer Holdings ZMH $97.52 $16,510 17.49
5 Exactech EXAC $20.48 $282 17.66

Highest Price / Earnings Ratio (TTM)

Company Symbol
Price
Mkt Cap
P/E
1 Orthofix OFIX $28.04 $517 179.13
2 NuVasive NUVA $34.51 $1,621 66.84
3 Symmetry Medical SMA $9.64 $362 49.76
4 CryoLife CRY $10.15 $283 30.49
5 Integra LifeSciences IART $48.20 $1,571 27.07

Lowest P/E to Growth Ratio (Earnings Estimates)

Company Symbol
Price
Mkt Cap
PEG
1 Exactech EXAC $20.48 $282 0.98
2 CryoLife CRY $10.15 $283 1.02
3 Globus Medical GMED $19.56 $1,846 1.24
4 ConMed CNMD $39.31 $1,075 1.71
5 Zimmer Holdings ZMH $97.52 $16,510 2.05

Highest P/E to Growth Ratio (Earnings Estimates)

Company Symbol
Price
Mkt Cap
PEG
1 Orthofix OFIX $28.04 $517 9.74
2 NuVasive NUVA $34.51 $1,621 5.37
3 Symmetry Medical SMA $9.64 $362 4.15
4 Smith & Nephew SNN $30.42 $13,591 2.57
5 Johnson & Johnson JNJ $98.70 $278,362 2.51

Lowest Price to Sales Ratio (TTM)

Company Symbol
Price
Mkt Cap
PSR
1 Baxano Surgical Inc BAXS $0.12 $6 0.30
2 Alphatec Holdings ATEC $1.45 $142 0.69
3 Bacterin Intl Holdings BONE $4.02 $27 0.79
4 RTI Biologics Inc RTIX $3.72 $211 0.87
5 Symmetry Medical SMA $9.64 $362 0.90

Highest Price to Sales Ratio (TTM)

Company Symbol
Price
Mkt Cap
PSR
1 TiGenix TIG.BR $0.65 $104 18.26
2 MiMedx Group MDXG $8.29 $876 11.06
3 LDR Holding Corp LDRH $33.30 $865 7.75
4 Wright Medical WMGI $30.51 $1,539 5.72
5 Globus Medical GMED $19.56 $1,846 4.10

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