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Weekly News, Analysis, and Commentary

Power Rankings

Power Rankings: October 27th, 2014

Robin Young’s Entirely Subjective Ordering of Public Orthopedic Companies

This Week: Q3’s reports are just about all in and, as we and others have signaled, sales growth rates are up yet again and across the board. We’re talking tail wind. Strong and steady. Year-over-year sales growth, especially in large joint recon, accelerated sequentially each quarter this year. Why? Higher employment rates in the U.S. economy. More insurance coverage. An aging population. In short, rising demand. And, at least in the case of Zimmer, even stable pricing.

Rank Last Week Company TTM Op
Margin
30-Day Change
Comment
1
4
ConMed
10.51%
9.79%
Higher profits on lower sales. That might give some investors pause, but savvy analysts see efficiencies leading to wealth creation.
2
5
MicroPort
16.53
8.16
The 7th least expensive ortho equity and, finally, buyers are taking notice of the strategic value in this company.
3
1
Symmetry Medical
6.55
0.71
SMA will report at the end of this week. Consensus says they will post up a near doubling of earnings—on down recon sales.
4
2
Stryker
11.52
2.54
Very nice quarter—courtesy of trauma and extremities. Large joint recon had pricing issues and the recent M&A splurge is still digesting.
5
3
Zimmer
29.12
1.60
On the eve of merging with Biomet, Big Blue beats Wall Street consensus. Great quarter. But investors are looking beyond Q3 to the big merger.
6
9
Medtronic
28.84
4.38
Two new spine products announced—a new anterior cervical fusion system and a new titanium plus PEEK interbody device. NASS must be around the corner.
7
7
NuVasive
8.01
1.00
The key for NUVA this quarter is more profits from each sales dollar. At current prices, NUVA is the 9th least expensive ortho equity.
8
8
Globus Medical
29.68
4.56
Speaking of expensive, GMED is the most expensive stock on the Power Rankings. Why? Because it’s a little money machine.
9
6
Integra LifeSciences
12.57
(1.17)
IART wraps up the purchase of MicroFrance and Xomed’s Manual ENT instrument lines. But investors are not impressed.
10
10
Exactech
10.26
(7.57)
Uff Da! Modest sales growth (only 4%) and earnings drop 6% due to currency issues. Still, doesn’t justify this kind of sell off.

Top Performers Last 30 Days

Company Symbol
Price
Mkt Cap
30-Day Chg
1 MiMedx Group MDXG $9.13 $965 26.10%
2 ConMed CNMD $41.03 $1,130 9.79%
3 MicroPort Scientific 853 $0.53 $748 8.16%
4 LDR Holding Corp LDRH $33.43 $868 7.08%
5 Globus Medical GMED $20.63 $1,950 4.56%
6 Medtronic MDT $66.56 $65,200 4.38%
7 CryoLife CRY $10.55 $295 2.93%
8 Stryker SYK $84.22 $31,860 2.54%
9 K2M Group Holdings KTWO $13.84 $514 2.52%
10 Zimmer Holdings ZMH $105.29 $17,830 1.60%

Worst Performers Last 30 Days

Company Symbol
Price
Mkt Cap
30-Day Chg
1 RTI Biologics Inc RTIX $4.11 $234 -20.50%
2 Aurora Spine ASG $1.34 $21 -19.76%
3 Alphatec Holdings ATEC $1.46 $143 -16.57%
4 TiGenix TIG.BR $0.64 $103 -13.51%
5 Bacterin Intl Holdings BONE $4.11 $27 -13.47%
6 Baxano Surgical Inc BAXS $0.13 $7 -13.33%
7 Exactech EXAC $21.36 $294 -7.57%
8 Orthofix OFIX $28.82 $531 -7.21%
9 Smith & Nephew SNN $31.84 $14,230 -6.05%
10 Johnson & Johnson JNJ $103.13 $290,860 -5.07%

Lowest Price / Earnings Ratio (TTM)

Company Symbol
Price
Mkt Cap
P/E
1 Medtronic MDT $66.56 $65,200 17.11
2 Johnson & Johnson JNJ $103.13 $290,860 17.19
3 Globus Medical GMED $20.63 $1,950 17.50
4 Zimmer Holdings ZMH $105.29 $17,830 18.38
5 Exactech EXAC $21.36 $294 18.74

Highest Price / Earnings Ratio (TTM)

Company Symbol
Price
Mkt Cap
P/E
1 Orthofix OFIX $28.82 $531 180.13
2 NuVasive NUVA $36.30 $1,710 69.81
3 Symmetry Medical SMA $9.92 $373 52.21
4 CryoLife CRY $10.55 $295 31.97
5 Integra LifeSciences IART $49.72 $1,620 27.93

Lowest P/E to Growth Ratio (Earnings Estimates)

Company Symbol
Price
Mkt Cap
PEG
1 CryoLife CRY $10.55 $295 1.07
2 Exactech EXAC $21.36 $294 1.25
3 Globus Medical GMED $20.63 $1,950 1.31
4 ConMed CNMD $41.03 $1,130 1.78
5 Stryker SYK $84.22 $31,860 1.98

Highest P/E to Growth Ratio (Earnings Estimates)

Company Symbol
Price
Mkt Cap
PEG
1 Orthofix OFIX $28.82 $531 9.79
2 NuVasive NUVA $36.30 $1,710 6.24
3 Symmetry Medical SMA $9.92 $373 4.35
4 Smith & Nephew SNN $31.84 $14,230 2.69
5 Johnson & Johnson JNJ $103.13 $290,860 2.62

Lowest Price to Sales Ratio (TTM)

Company Symbol
Price
Mkt Cap
PSR
1 Baxano Surgical Inc BAXS $0.13 $7 0.32
2 Alphatec Holdings ATEC $1.46 $143 0.70
3 Bacterin Intl Holdings BONE $4.11 $27 0.81
4 Symmetry Medical SMA $9.92 $373 0.93
5 RTI Biologics Inc RTIX $4.11 $234 0.96

Highest Price to Sales Ratio (TTM)

Company Symbol
Price
Mkt Cap
PSR
1 TiGenix TIG.BR $0.64 $103 18.11
2 MiMedx Group MDXG $9.13 $965 12.18
3 LDR Holding Corp LDRH $33.43 $868 7.78
4 Wright Medical WMGI $31.86 $1,610 5.99
5 Globus Medical GMED $20.63 $1,950 4.33

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