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Weekly News, Analysis, and Commentary

Power Rankings

Power Rankings: February 17th, 2015

Robin Young’s Entirely Subjective Ordering of Public Orthopedic Companies

This Week: Is the EuroZone economy picking up steam? Since 2009, U.S. has far outpaced Europe—mostly due to Bernanke’s zero interest, flood the markets with cash approach versus the German-led austerity campaign. Europe’s central bankers seemed to moderate 2014 and whadya know…the Eurozone economy posted a stronger-than-expected 0.3% in Q4. Full year 2014 was PLUS 0.9% versus a MINUS 0.4% in 2013.

Rank Last Week Company TTM Op
Margin
30-Day Change
Comment
1
1
Integra LifeSciences
12.57%
2.52%
How cheap is IART? It’s getting to a level that even famous bargain hunters like, well, IART would find it attractive.
2
2
ConMed
10.51
4.68
Buyers are betting on the new management and pushing CNMD’s price higher. Could expectations be running ahead of performance?
3
4
Stryker
11.52
1.35
Raised the quarterly dividend 13%. And is getting ready for a strong AAOS. At these prices, SYK is way too cheap.
4
7
Zimmer
29.12
1.83
ZMH is the same overall valuation as SYK. Checking PE, PEG and PSR. For the first time in 10 years, SYK and ZMH are the same. Big jump this week.
5
5
Orthofix
7.46
9.19
Given the paucity of financial data, how can anyone predict OFIX’s sales? Only one analyst is hazarding a guess for 2015—+2.5% sales growth.
6
6
MicroPort Scientific
16.53
10.57
AAOS looms large for MicroPort. Who is MicroPort? This meeting will help to define this old/new company for physicians and the industry broadly.
7
3
Medtronic
28.84
4.86
Medtronic Spine is mending well. Most analysts are modeling a rise in spinal implant sales for 2015 and stable Infuse.
8
9
Exactech
10.44
(4.45)
Three-way tie for #2 valuation. EXAC, SYK and ZMH. But, as in integrated ortho these days, size matters in the Power Rankings too.
9
10
NuVasive
8.01
(1.01)
Profit taking is improving NUVA’s price relative to its peers. Still in the premium range, but back in the top 10 overall.
10
8
Smith & Nephew
19.92
2.08
Without the M&A rumors what’s SNN worth? Less than this—based on past history. Looks like the rush to the altar was premature.

Top Performers Last 30 Days

Company Symbol
Price
Mkt Cap
30-Day Chg
1 TiGenix TIG.BR $0.86 $138 32.91%
2 MicroPort Scientific 853 $0.46 $651 10.57%
3 LDR Holding Corp. LDRH $37.73 $983 9.36%
4 Orthofix OFIX $32.09 $592 9.19%
5 RTI Biologics Inc RTIX $5.54 $315 7.36%
6 Aurora Spine ASG $1.27 $21 6.95%
7 Medtronic MDT $75.26 $106,781 4.86%
8 ConMed CNMD $48.98 $1,348 4.68%
9 Bacterin Intl Holdings BONE $3.09 $21 4.04%
10 Globus Medical GMED $24.85 $2,434 3.58%

Worst Performers Last 30 Days

Company Symbol
Price
Mkt Cap
30-Day Chg
1 K2M Group Holdings KTWO $19.75 $779 -9.36%
2 CryoLife CRY $11.30 $316 -7.30%
3 Exactech EXAC $22.33 $308 -4.45%
4 Alphatec Holdings ATEC $1.34 $133 -4.29%
5 Johnson & Johnson JNJ $99.62 $278,847 -4.21%
6 NuVasive NUVA $46.99 $2,210 -1.01%
7 Tornier N.V. TRNX $25.32 $1,238 0.04%
8 MiMedx Group MDXG $8.65 $925 0.12%
9 Wright Medical WMGI $25.68 $1,311 0.47%
10 Stryker SYK $94.51 $35,796 1.35%

Lowest Price / Earnings Ratio (TTM)

Company Symbol
Price
Mkt Cap
P/E
1 Johnson & Johnson JNJ $99.62 $278,847 16.69
2 Medtronic MDT $75.26 $106,781 19.05
3 Exactech EXAC $22.33 $308 19.59
4 Globus Medical GMED $24.85 $2,434 20.44
5 Zimmer Holdings ZMH $119.33 $20,209 20.64

Highest Price / Earnings Ratio (TTM)

Company Symbol
Price
Mkt Cap
P/E
1 MiMedx Group MDXG $8.65 $925 862.50
2 Orthofix OFIX $32.09 $592 205.01
3 NuVasive NUVA $46.99 $2,210 121.29
4 RTI Biologics Inc RTIX $5.54 $315 86.96
5 CryoLife CRY $11.30 $316 38.69

Lowest P/E to Growth Ratio (Earnings Estimates)

Company Symbol
Price
Mkt Cap
PEG
1 CryoLife CRY $11.30 $316 1.29
2 Exactech EXAC $22.33 $308 1.31
3 ConMed CNMD $48.98 $1,348 1.49
4 Globus Medical GMED $24.85 $2,434 1.54
5 Medtronic MDT $75.26 $106,781 1.69

Highest P/E to Growth Ratio (Earnings Estimates)

Company Symbol
Price
Mkt Cap
PEG
1 MiMedx Group MDXG $8.65 $925 57.50
2 Orthofix OFIX $32.09 $592 11.14
3 NuVasive NUVA $46.99 $2,210 10.61
4 RTI Biologics Inc RTIX $5.54 $315 5.80
5 Smith & Nephew SNN $35.82 $16,054 4.71

Lowest Price to Sales Ratio (TTM)

Company Symbol
Price
Mkt Cap
PSR
1 Bacterin Intl Holdings BONE $3.09 $21 0.60
2 Alphatec Holdings ATEC $1.34 $133 0.65
3 RTI Biologics Inc RTIX $5.54 $315 1.20
4 Exactech EXAC $22.33 $308 1.25
5 Orthofix OFIX $32.09 $592 1.48

Highest Price to Sales Ratio (TTM)

Company Symbol
Price
Mkt Cap
PSR
1 TiGenix TIG.BR $0.86 $138 24.16
2 MiMedx Group MDXG $8.65 $925 9.57
3 LDR Holding Corp. LDRH $37.73 $983 7.35
4 Medtronic MDT $75.26 $106,781 6.15
5 Globus Medical GMED $24.85 $2,434 5.28

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