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Power Rankings

Power Rankings: December 4th, 2017

Robin Young's Entirely Subjective Ordering of Public Orthopedic Companies

This Week: Orthopedic equities may not increase as much as real estate, but the Senate's approval of the tax plan will lift the market significantly this week. All boats will rise. The new buying will show that investors have shifted their focus away from Mueller and the Russia investigation to an imminent overhaul of the U.S. tax system. Investors expect it will pay dividends for years. Equity valuations will rise. Capital will become cheaper still.

Rank Last Week Company TTM Op
Margin
30-Day Change
Comment
1
7 Integra LifeSciences 15.60% 6.21% IART, which is among the least expensive equities in the orthopedic universe, found strong buying support so, based on the obtuse, GARP-ish algorythm we use, is #1 this week.
2
1 Medtronic 21.05 1.20 In terms of sheer valuation, MDT remains a notably inexpensive equity. And coming so soon after a strong quarterly report, MDT should remain near the top of most buy lists.
3
2 ConMed 8.92 0.73 In terms of price, CNMD is second least expensive equity this week in orthopedics. Investors, however, expect CNMD to post up exceptional rates of earnings growth over the coming couple of years.
4
6 Zimmer Biomet 22.28 (0.45) While knee challenges and supply issues continue to hurt valuation, ZBH is way oversold given its inherent cash generating abilities. Key milestone: new CEO.
5
3 Orthofix 8.01 2.89 One statistic which shows why OFIX has rebounded so resolutely is the ratio of earnings to sales growth. Based on the first 9 months, earnings are growing 3x faster than sales.
6
4 Stryker 22.38 0.93 As we enter the final month of 2017, it's worth noting that SYK will likely report full year sales of around $12.3 billion. That is, get ready for it, $1 billion more than last year.
7
5 Globus Medical 26.72 20.38 Big jump in valuation for GMED in just the last 30 days. Why? Is it profits? Is it sales growth? Is it the low, low PE ratio? Nope. It's because of Excelsius. The Robot.
8
10 NuVasive 11.57 4.66 Up three spots in just a week. NUVA's drop in price has both pulled it onto the Power Rankings AND attracted new buyers. Which is why the stock is up nearly 5% in one month.
9
8 Johnson & Johnson 27.59 0.00 DePuy Synthes partner in robotics is Google. Specifically Google's Verb robotics company. One aspect of the vision, walls and ceilings are part of the robot. Far out.
10
9 Smith & Nephew 19.53 (2.87) For investors it's hard to get a handle on SNN. Is it a London company?  A U.S. firm?  It's 5-year average dividend rate of  return is 1.73%.  Reflects also the conservative nature of management.

Top Performers Last 30 Days

Company Symbol
Price
Mkt Cap
30-Day Chg
1 Pacira PCRX $45.25 $1,836 38.80%
2 Globus Medical GMED $37.62 $3,625 20.38%
3 Lattice Biologics LBL.V $0.07 $7 18.56%
4 MicroPort Scientific 853 $1.14 $1,654 10.95%
5 RTI Biologics Inc RTIX $4.73 $287 8.62%
6 Integra LifeSciences  IART $49.09 $3,852 6.21%
7 NuVasive NUVA $58.84 $2,999 4.66%
8 CryoLife CRY $19.80 $662 4.21%
9 Orthofix OFIX $53.99 $984 2.98%
10 Medtronic MDT $81.27 $110,006 1.20%

Worst Performers Last 30 Days

Company Symbol
Price
Mkt Cap
30-Day Chg
1 Alphatec Holdings ATEC $2.65 $44 -25.77%
2 Amedica Corp AMDA $3.33 $10 -21.92%
3 Nevro Corp NVRO $74.00 $2,192 -16.84%
4 Xtant Medical Hldgs XTNT $0.61 $11 -13.65%
5 Aurora Spine  ASG.V $0.09 $3 -13.19%
6 Wright Med Grp N.V WMGI $23.72 $2,491 -8.52%
7 Smith & Nephew SNN $35.85 $15,679 -2.87%
8 TiGenix  TIG.BR $1.12 $307 -1.18%
9 K2M Grp Holdings KTWO $18.93 $820 -0.84%
10 SeaSpine Hldgs Corp SPNE $9.96 $134 -0.80%

Lowest Price / Earnings Ratio (TTM)

Company Symbol
Price
Mkt Cap
P/E
1 Zimmer Biomet ZBH $114.57 $23,197 19.59
2 Smith & Nephew SNN $35.85 $15,679 20.00
3 Johnson & Johnson JNJ $139.98 $376,059 21.76
4 Medtronic MDT $81.27 $110,006 22.71
5 Globus Medical GMED $37.62 $3,625 26.14

Highest Price / Earnings Ratio (TTM)

Company Symbol
Price
Mkt Cap
P/E
1 MicroPort Scientific 853 $1.14 $1,654 116.97
2 Orthofix OFIX $53.99 $984 115.17
3 MiMedx Group MDXG $11.56 $1,284 58.53
4 NuVasive NUVA $58.84 $2,999 58.12
5 CryoLife CRY $19.80 $662 49.77

Lowest P/E to Growth Ratio (Earnings Estimates)

Company Symbol
Price
Mkt Cap
PEG
1 CryoLife CRY $19.80 $662 1.66
2 MicroPort Scientific 853 $1.14 $1,654 1.70
3 Globus Medical GMED $37.62 $3,625 2.55
4 Stryker SYK $155.87 $58,332 2.66
5 Integra LifeSciences  IART $49.09 $3,852 3.05

Highest P/E to Growth Ratio (Earnings Estimates)

Company Symbol
Price
Mkt Cap
PEG
1 Orthofix OFIX $53.99 $984 11.40
2 Conmed CNMD $52.74 $1,473 7.21
3 Exactech EXAC $42.35 $608 4.36
4 NuVasive NUVA $58.84 $2,999 4.09
5 MiMedx Group MDXG $11.56 $1,284 3.90

Lowest Price to Sales Ratio (TTM)

Company Symbol
Price
Mkt Cap
PSR
1 Xtant Medical Hldgs XTNT $0.61 $11 0.12
2 Aurora Spine  ASG.V $0.09 $3 0.33
3 Alphatec Holdings ATEC $2.65 $44 0.37
4 Amedica Corp AMDA $3.33 $10 0.66
5 SeaSpine Hldgs Corp SPNE $9.96 $134 1.04

Highest Price to Sales Ratio (TTM)

Company Symbol
Price
Mkt Cap
PSR
1 TiGenix  TIG.BR $1.12 $307 11.46
2 Nevro Corp NVRO $74.00 $2,192 9.59
3 Pacira PCRX $45.25 $1,836 6.64
4 Globus Medical GMED $37.62 $3,625 6.43
5 MiMedx Group MDXG $11.56 $1,284 5.24

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