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Weekly News, Analysis, and Commentary

Power Rankings

Power Rankings: June 26th, 2017

Robin Young's Entirely Subjective Ordering of Public Orthopedic Companies

This Week: This is the final week of the second quarter. Sales reports should start coming in late July. As a prelude to earnings season, we get a final read on Q1's GDP, consumer confidence and inflation thsi week. Also, Fed Chair Yellen gives a talk on Tuesday and is expected to stay the course of modest rate hikes. Or, in Fed-speak, "A ‘gradual’ removal of policy accommodation (at least in US) remains appropriate. The global economy is far from showing signs of overheating, crisis-level monetary stimulus may be less necessary at this point.”

Rank Last Week Company TTM Op
Margin
30-Day Change
Comment
1
1
Zimmer Biomet
22.92%
8.59%
ZBH's patina of managerial excellence eroded a bit  in the last 12 months. But the sales numbers, as we will see in Q2, remain strong.
2
6
Exactech
9.05
3.09
Nice bounce last week. Only ZBH is less expensive than EXAC on a PE, PSR or PEG basis. Maybe investors are noticing EXAC's strong pace of new product introduction.
3
2
Medtronic
21.05
5.31
MDT announced a 7% cash dividend increase—the 40th consecutive year of dividend increases. AND…a $5 billion stock repurchase program. Shareholders should be very happy.
4
4
Orthofix
8.01
9.93
For the March quarter OFIX posted a 4.6% rate of sales growth. For the June quarter Wall Street's analysts are forecasting 1% decline in sales. Overly conservative.
5
7
ConMed
9.53%
3.32
As management told Wall Street's analysts in the first quarter's conference call, there is still work to do. In about four weeks, CEO Hartman and team will provide a progress update.
6
3
Integra LifeSciences
11.60
11.42
Wall Street's analysts think IART will post a 13.80% rate of sales growth for the June quarter. At these prices, buyers are obviously paying for sustained, above average growth.
7
8
RTI Surgical
(19.10)
10.89
Since taking RTI's reins 5 months ago, new CEO Farhat has enjoyed a 67% rise in RTIX stock price. Analysts, however, are forecasting modest sales growth and only a couple pennies per share in earnings.
8
5
Stryker
22.61
0.81
SYK pays $700 million to buy a flourescent imaging company—Novadaq. Allows surgeons to observe blood flow under the skin. Claims to lower costs and Aes.
9
10
Smith & Nephew
19.53
0.86
SNN takes a minority interest in Trice Medical. Brilliant move. Trice's device delivers instant, eyes-on, view of articluating joints in the doctor's office.  Fits with MIS orthopedics.
10
9
Microport Scientific
3.80
9.34
Microport's annual revenues will likely exceed $360 million in 2017 and of that, more than half will come from sales of orthopedic recon, trauma and spine products.

Top Performers Last 30 Days

Company Symbol
Price
Mkt Cap
30-Day Chg
1 Xtant Medical Hldgs XTNT $0.69 $12 63.79%
2 TiGenix TIG.BR $1.05 $273 22.79%
3 MiMedx Group MDXG $15.71 $1,742 15.60%
4 Integra LifeSciences IART $54.34 $4,109 11.42%
5 Globus Medical GMED $33.95 $3,262 10.98%
6 RTI Biologics Inc RTIX $5.60 $328 10.89%
7 Orthofix OFIX $46.60 $841 9.93%
8 MicroPort Scientific 853 $0.79 $1,146 9.34%
9 Zimmer Biomet ZBH $129.09 $26,030 8.59%
10 K2M Group Hldgs KTWO $23.92 $1,019 7.89%

Worst Performers Last 30 Days

Company Symbol
Price
Mkt Cap
30-Day Chg
1 Lattice Biologics LBL.V $0.09 $6 -10.65%
2 Amedica Corp AMDA $0.33 $12 -9.39%
3 Aurora Spine ASG.V $0.10 $3 -6.21%
4 Alphatec Holdings ATEC $1.88 $20 -6.00%
5 SeaSpine Hldgs Corp SPNE $10.08 $118 -3.36%
6 Wright Med Grp N.V WMGI $26.94 $2,810 -0.85%
7 Nevro Corp NVRO $73.84 $2,163 -0.36%
8 Stryker SYK $141.12 $52,746 0.81%
9 Smith & Nephew SNN $35.18 $15,391 0.86%
10 Pacira PCRX $47.45 $1,902 2.48%

Lowest Price / Earnings Ratio (TTM)

Company Symbol
Price
Mkt Cap
P/E
1 Smith & Nephew SNN $35.18 $15,391 19.63
2 Johnson & Johnson JNJ $136.43 $367,520 21.52
3 Globus Medical GMED $33.95 $3,262 23.49
4 Stryker SYK $141.12 $52,746 25.36
5 Medtronic MDT $89.20 $122,105 25.42

Highest Price / Earnings Ratio (TTM)

Company Symbol
Price
Mkt Cap
P/E
1 MiMedx Group MDXG $15.71 $1,742 107.38
2 Orthofix OFIX $46.60 $841 98.83
3 NuVasive NUVA $76.78 $3,890 91.18
4 MicroPort Scientific 853 $0.79 $1,146 81.06
5 CryoLife CRY $19.90 $662 48.58

Lowest P/E to Growth Ratio (Earnings Estimates)

Company Symbol
Price
Mkt Cap
PEG
1 CryoLife CRY $19.90 $662 1.62
2 Globus Medical GMED $33.95 $3,262 2.17
3 Stryker SYK $141.12 $52,746 2.61
4 Zimmer Biomet ZBH $129.09 $26,030 2.72
5 Exactech EXAC $31.70 $454 2.99

Highest P/E to Growth Ratio (Earnings Estimates)

Company Symbol
Price
Mkt Cap
PEG
1 Orthofix OFIX $46.60 $841 14.86
2 MiMedx Group MDXG $15.71 $1,742 7.16
3 ConMed CNMD $51.42 $1,433 6.25
4 NuVasive NUVA $76.78 $3,890 6.10
5 Smith & Nephew SNN $35.18 $15,391 3.70

Lowest Price to Sales Ratio (TTM)

Company Symbol
Price
Mkt Cap
PSR
1 Xtant Medical Hldgs XTNT $0.69 $12 0.14
2 Alphatec Holdings ATEC $1.88 $20 0.17
3 Aurora Spine ASG.V $0.10 $3 0.32
4 Amedica Corp AMDA $0.33 $12 0.62
5 SeaSpine Hldgs Corp SPNE $10.08 $118 0.92

Highest Price to Sales Ratio (TTM)

Company Symbol
Price
Mkt Cap
PSR
1 TiGenix TIG.BR $1.05 $273 10.20
2 Nevro Corp NVRO $73.84 $2,163 9.47
3 MiMedx Group MDXG $15.71 $1,742 7.11
4 Pacira PCRX $47.45 $1,902 6.88
5 Globus Medical GMED $33.95 $3,262 5.78

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