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Power Rankings: July 26th, 2010

Robin Young's Entirely Subjective Ordering of Public Orthopedic Companies
This Week: The sell-off continues. Sellers drove orthopedic valuations down again last week. The average orthopedic company is now at 12.3x earnings and 2.5x sales. By comparison the S&P 500 is 20.07x earnings. What does this say? It says institutional investors view orthopedics as a riskier-than-average investment.
Rank Last Week Company TTM Op
Margin
30-Day
Change
Comment
1 1 Orthofix 13.51% (9.16%) Earnings due this week. Consensus is looking for 30% earnings growth on 4% sales growth.
2 2 Kensey Nash 38.72 3.57 What do you with $70 million in cash? Buy something or pay it out? Either way, that cash is the bulwark against uncertainty.
3 5 Medtronic 32.48 (1.88) Up two spots this week on the basis of a 11x PE and a whopping 32% operating margin. Talk about cheap dollars.
4 7 Zimmer 27.69 (2.29) Up smartly this week on the basis of a solid, unexpectedly positive earnings report.
5 6 Stryker 24.71 (6.20) Up one place this week despite lukewarm operating results. Profit margins rose in the quarter. Medsurg surged. Two good signs.
6 4 Symmetry 11.48 (4.61) The upcoming quarterly report is supposed to be ugly—11 vs. 25. Ugh. But next year. Much better. Consensus says 74 vs. 48.
7 3 Johnson & Johnson 27.1 (2.72) A high dividend can only take a company so far. After last quarter’s performance, looks like down earnings for 3Q on flat sales.
8 8 Smith & Nephew 22.83 (0.70) This coming report will be key, not only for SNN but for the industry. Will SNN also report sluggish hip and knee sales?
9 9 Exactech 12.72 (9.81) When the orthopedic industry catches a cold, EXAC, being small, is more vulnerable. First week in August will tell the story.
10 10 Integra LifeSciences 15.37 (11.70) Consensus for this week is that IART will post up 25% earnings growth on 6% sales growth. Market is showing skepticism.
Top Performers Last 30 Days
  Company Symbol
Price
Mkt Cap
30-Day Chg
1 CryoLife CRY $6.06 $174 9.0%
2 Capstone Therapeutics CAPS $0.74 $30 5.7%
3 Kensey Nash KNSY $23.24 $226 3.6%
4 Synthes SYST.VX $113.90 $13,517 0.1%
5 TiGenix  TIG.BR $2.21 $68 -1.7%
6 Medtronic MDT $36.58 $39,610 -1.9%
7 Zimmer Holdings ZMH $52.94 $10,740 -2.3%
8 Johnson & Johnson JNJ $57.63 $158,950 -2.7%
9 Average $10,684 -3.1%
10 Osteotech OSTE $3.19 $58 -4.2%
Worst Performers Last 30 Days
  Company Symbol
Price
Mkt Cap
30-Day Chg
1 Orthovita VITA $1.87 $144 -20.1%
2 Alphatec Holdings ATEC $4.23 $369 -15.4%
3 ArthroCare ARTC $26.58 $716 -15.0%
4 TranS1 TSON $2.36 $49 -14.5%
5 Mako Surgical MAKO $11.83 $399 -12.6%
6 Wright Medical WMGI $15.56 $604 -12.0%
7 Integra LifeSciences  IART $34.27 $994 -11.7%
8 Smith & Nephew SNN $43.13 $7,660 -10.7%
9 Exactech EXAC $15.44 $199 -9.8%
10 Orthofix OFIX $29.25 $515 -9.2%
Lowest Price / Earnings Ratio (TTM)
  Company Symbol
Price
Mkt Cap
P/E
1 Medtronic MDT $36.58 $39,610 11.04
2 Johnson & Johnson JNJ $57.63 $158,950 12.22
3 Average $10,684 12.31
4 Exactech EXAC $15.44 $199 12.54
5 Zimmer Holdings ZMH $52.94 $10,740 12.60
Highest Price / Earnings Ratio (TTM)
  Company Symbol
Price
Mkt Cap
P/E
1 Smith & Nephew SNN $43.13 $7,660 60.90
2 RTI Biologics Inc RTIX $2.86 $156 47.55
3 NuVasive NUVA $34.39 $1,350 31.10
4 Symmetry Medical SMA $10.55 $379 21.05
5 CONMED CNMD $17.99 $525 16.52
Lowest P/E to Growth Ratio (Earnings Estimates)
  Company Symbol
Price
Mkt Cap
PEG
1 Orthofix OFIX $29.25 $515 0.58
2 CryoLife CRY $6.06 $174 0.67
3 Alphatec Holdings ATEC $4.23 $369 0.79
4 Exactech EXAC $15.44 $199 0.86
5 NuVasive NUVA $34.39 $1,350 0.90
Highest P/E to Growth Ratio (Earnings Estimates)
  Company Symbol
Price
Mkt Cap
PEG
1 CONMED CNMD $17.99 $525 7.06
2 Symmetry Medical SMA $10.55 $379 2.01
3 Johnson & Johnson JNJ $57.63 $158,950 1.87
4 Average $10,684 1.63
5 RTI Biologics Inc RTIX $2.86 $156 1.46
Lowest Price to Sales Ratio (TTM)
  Company Symbol
Price
Mkt Cap
PSR
1 Osteotech OSTE $3.19 $58 0.62
2 CONMED CNMD $17.99 $525 0.73
3 Orthofix OFIX $29.25 $515 0.88
4 RTI Biologics Inc RTIX $2.86 $156 0.94
5 Symmetry Medical SMA $10.55 $379 1.06
Highest Price to Sales Ratio (TTM)
  Company Symbol
Price
Mkt Cap
PSR
1 TiGenix  TIG.BR $2.21 $68 66.11
2 Mako Surgical MAKO $11.83 $399 10.31
3 Synthes SYST.VX $113.90 $13,517 3.98
4 NuVasive NUVA $34.39 $1,350 3.20
5 Kensey Nash KNSY $23.24 $226 2.81