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Weekly News, Analysis, and Commentary

Power Rankings

Power Rankings: November 10th, 2014

Robin Young’s Entirely Subjective Ordering of Public Orthopedic Companies

This Week: Unemployment hits a six-year low and the major stock indices hit record highs after rising for the third week in a row. Should be a good Christmas this year for all equities. For orthopedic companies, the wind is clearly at their back as demand continues to rise and the number of insured patients grows and grows. Most analysts are updating their models for 2015 and 2016.

Rank Last Week Company TTM Op
Margin
30-Day Change
Comment
1
3
Stryker
11.52%
3.70%
Second least expensive equity in orthopedics as measured by P/E, PSR and PEG.
2
1
ConMed
10.51
5.24
Analysts are still forecasting as if the old management was in charge—namely down sales and flat earnings.
3
4
Zimmer
29.12
4.49
New name (Zimmer Biomet) and new senior management team announced. Now comes integration.
4
5
NuVasive
8.01
15.94
Five of the 10 top ortho performers this past month are spine companies. Leader of the group, NUVA, has the best valuation.
5
7
Globus Medical
29.68
8.7
Trading at roughly 5.5x sales, GMED is the most expensive of the companies in the Power Rankings. Doesn’t faze buyers.
6
6
Medtronic
28.84
3.61
If any equity should respond to rumors of medical device tax repeal it is MDT. Unless it is Covidien before then.
7
10
Smith & Nephew
19.92
0.53
Analysts are really quite bullish on SNN’s sales and earnings this quarter. Consensus is 8.70% sales gain and 22% earnings jump.
8
2
MicroPort
16.53
-3.31
Sellers re-emerged this past week on no news. Hard to get much visibility on sales and earnings.
9
8
Integra LifeSciences
12.57
-6.31
Cheapest stock in all orthopedics. And investors are still looking for a reason to buy this Blue Light Special.
10
9
Symmetry Medical
6.55
-5.98
Weak sales but decently strong earnings. Most buyers staying on the sidelines until things settle down.

Top Performers Last 30 Days

Company Symbol
Price
Mkt Cap
30-Day Chg
1 Baxano Surgical Inc BAXS $0.22 $11 83.45%
2 MiMedx Group MDXG $10.24 $1,083 43.42%
3 K2M Group Holdings 853 $17.00 $631 21.69%
4 NuVasive NUVA $41.75 $1,964 15.94%
5 Globus Medical GMED $21.48 $2,542 8.70%
6 LDR Holding Corp. LDRH $34.25 $892 7.98%
7 Tornier N.V. TRNX $25.50 $1,247 6.52%
8 Bacterin Intl Holdings BONE $4.07 $27 5.99%
9 RTI Biologics Inc RTIX $5.09 $290 5.82%
10 ConMed CNMD $41.77 $1,150 5.24%

Worst Performers Last 30 Days

Company Symbol
Price
Mkt Cap
30-Day Chg
1 Alphatec Holdings ATEC $1.39 $136 -13.13%
2 Exactech EXAC $21.42 $296 -11.19%
3 Wright Medical WMGI $27.95 $1,427 -9.72%
4 TiGenix TIG.BR $0.63 $102 -8.90%
5 CryoLife CRY $10.06 $281 -7.11%
6 Aurora Spine ASG $1.25 $20 -6.68%
7 Orthofix OFIX $29.01 $535 -6.39%
8 Integra LifeSciences IART $47.05 $1,543 -6.31%
9 Symmetry Medical SMA $9.27 $348 -5.98%
10 MicroPort Scientific 85300.0% $0.48 $686 -3.31%

Lowest Price / Earnings Ratio (TTM)

Company Symbol
Price
Mkt Cap
P/E
1 Medtronic MDT $68.10 $66,937 17.50
2 Johnson & Johnson JNJ $108.20 $302,864 18.02
3 Exactech EXAC $21.42 $296 18.79
4 Zimmer Holdings ZMH $108.19 $18,322 18.88
5 Stryker SYK $87.47 $33,092 20.41

Highest Price / Earnings Ratio (TTM)

Company Symbol
Price
Mkt Cap
P/E
1 MiMedx Group MDXG $10.24 $1,083 1021.04
2 RTI Biologics Inc RTIX $5.09 $290 304.35
3 Orthofix OFIX $29.01 $535 185.33
4 Symmetry Medical SMA $9.27 $348 113.29
5 NuVasive NUVA $41.75 $1,964 107.77

Lowest P/E to Growth Ratio (Earnings Estimates)

Company Symbol
Price
Mkt Cap
PEG
1 CryoLife CRY $10.06 $281 1.15
2 Exactech EXAC $21.42 $296 1.25
3 Globus Medical GMED $21.48 $2,542 1.74
4 ConMed CNMD $41.77 $1,150 1.79
5 Integra LifeSciences IART $47.05 $1,543 1.98

Highest P/E to Growth Ratio (Earnings Estimates)

Company Symbol
Price
Mkt Cap
PEG
1 MiMedx Group MDXG $10.24 $1,083 68.07
2 RTI Biologics Inc RTIX $5.09 $290 20.29
3 Orthofix OFIX $29.01 $535 10.07
4 Symmetry Medical SMA $9.27 $348 9.44
5 NuVasive NUVA $41.75 $1,964 9.43

Lowest Price to Sales Ratio (TTM)

Company Symbol
Price
Mkt Cap
PSR
1 Baxano Surgical Inc BAXS $0.22 $11 0.54
2 Alphatec Holdings ATEC $1.39 $136 0.66
3 Bacterin Intl Holdings BONE $4.07 $27 0.80
4 Symmetry Medical SMA $9.27 $348 0.87
5 RTI Biologics Inc RTIX $5.09 $290 1.15

Highest Price to Sales Ratio (TTM)

Company Symbol
Price
Mkt Cap
PSR
1 TiGenix TIG.BR $0.63 $102 17.81
2 MiMedx Group MDXG $10.24 $1,083 11.20
3 LDR Holding Corp. LDRH $34.25 $892 8.00
4 Globus Medical GMED $21.48 $2,542 5.52
5 Wright Medical WMGI $27.95 $1,427 5.05

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