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Weekly News, Analysis, and Commentary

Power Rankings

Power Rankings: April 17th, 2018

Robin Young's Entirely Subjective Ordering of Public Orthopedic Companies

This Week: For the first time in memory, neither Stryker nor Zimmer Biomet made the Power Rankings. Power Ranked companies must be inexpensive relative to their orthopedic peers (we look at three basic valuation measures) while, at the same time, attracting some buying interest. While SYK and ZBH are inexpensive, the buying interest is for these two global, integrated suppliers is on holiday, for now.

Rank Last Week Company TTM Op
Margin
30-Day Change
Comment
1
2 Johnson & Johnson 25.13% (1.28%) JNJ's stock price is now the least expensive in orthopedics which, with a 3% dividend yield, pushes this device and pharma behemoth up to #1.
2
1 Integra LifeSciences 15.60 (1.55) Integra's sales performance for the March quarter will be reported soon. Most analysts are forecasting $349 milllion, up 35% from last year.
3
3 NuVasive 11.57 8.57 NuVasive will be announcing its first quarter results on May Day (May 1st). Consensus of Wall Street's analysts is that sales grew 3.80% over last year's levels.
4
5 MicroPort Scientific 13.59 12.90 MicroPort, which acquired Wright Medical's large joint business, reported a 33% jump in earnings for 2017. Can that torrid growth continue?
5
4 Orthofix 8.01 0.42 Pending purchase of Spinal Elements brings a disc arthroplasty product into the OFIX spine line. With FDA approval looming, the timing is excellent.
6
NR CryoLife 5.62 4.11 Only 3 analysts cover CRY-- one of the best, Ladenburg's Jeff Cohen--has been on CRY's transformation since Day 1. Sales expected to jump 34% for Q1.
7
7 Mimedx 10.63 (4.13) MDXG should not be this cheap--except that Wall Street has made up its mind about this management.  Institutional buyers are suspicious.   Creates a bargain.
8
NR Alphatec (7.52) 11.99 Allphatec is another under followed equity--although buyers are clearly intrigued. The stock is up a whopping 12% in the last month.
9
6 Medtronic 21.05 (3.32) Medtronic spine, which at times grows faster than the spine industry average, is still the largest supplier at 32% market share (with Infuse).
10
8 Smith & Nephew 19.53 1.62 New CEO, Namal Nawana, has the responsibility of fending off pressure to divest either wound care or medical devices.  Lots of hidden value here.

Top Performers Last 30 Days

Company Symbol
Price
Mkt Cap
30-Day Chg
1 SeaSpine Hldgs Corp SPNE $12.05 $175 20.86%
2 MicroPort Scientific 853 $1.13 $1,647 12.90%
3 Alphatec Holdings ATEC $3.55 $91 11.99%
4 Pacira PCRX $33.45 $1,362 9.49%
5 NuVasive NUVA $55.01 $2,820 8.57%
6 CryoLife CRY $21.55 $789 4.11%
7 Nevro Corp NVRO $90.04 $2,696 3.88%
8 TiGenix TIG.BR $2.17 $643 2.17%
9 Smith & Nephew SNN $38.24 $16,727 1.62%
10 Xtant Medical Hldgs XTNT $8.31 $109 1.34%

Worst Performers Last 30 Days

Company Symbol
Price
Mkt Cap
30-Day Chg
1 Amedica Corp AMDA $1.46 $6 -23.96%
2 Aurora Spine ASG.V $0.08 $3 -20.11%
3 Zimmer Biomet ZBH $105.57 $21,450 -9.18%
4 RTI Surgical RTIX $4.70 $290 -5.05%
5 Stryker SYK $158.35 $59,082 -4.83%
6 Wright Med Grp N.V WMGI $20.02 $2,120 -4.21%
7 MiMedx Group MDXG $6.97 $774 -4.13%
8 ConMed CNMD $61.90 $1,736 -4.05%
9 K2M Group Hldgs KTWO $19.10 $829 -3.49%
10 Medtronic MDT $79.57 $107,847 -3.32%

Lowest Price / Earnings Ratio (TTM)

Company Symbol
Price
Mkt Cap
P/E
1 Zimmer Biomet ZBH $105.57 $21,450 18.95
2 Johnson & Johnson JNJ $130.62 $350,406 20.31
3 Smith & Nephew SNN $38.24 $16,727 21.81
4 Medtronic MDT $79.57 $107,847 21.96
5 Stryker SYK $158.35 $59,082 27.06

Highest Price / Earnings Ratio (TTM)

Company Symbol
Price
Mkt Cap
P/E
1 RTI Surgical RTIX $4.70 $290 100.64
2 MicroPort Scientific 853 $1.13 $1,647 87.50
3 Orthofix OFIX $59.49 $1,095 61.63
4 CryoLife CRY $21.55 $789 59.58
5 NuVasive NUVA $55.01 $2,820 48.84

Lowest P/E to Growth Ratio (Earnings Estimates)

Company Symbol
Price
Mkt Cap
PEG
1 MicroPort Scientific 853 $1.13 $1,647 1.32
2 CryoLife CRY $21.55 $789 1.99
3 MiMedx Group MDXG $6.97 $774 2.35
4 Integra LifeSciences IART $55.27 $4,364 2.51
5 Johnson & Johnson JNJ $130.62 $350,406 2.57

Highest P/E to Growth Ratio (Earnings Estimates)

Company Symbol
Price
Mkt Cap
PEG
1 RTI Surgical RTIX $4.70 $290 6.71
2 Orthofix OFIX $59.49 $1,095 6.56
3 Smith & Nephew SNN $38.24 $16,727 4.11
4 ConMed CNMD $61.90 $1,736 3.23
5 Zimmer Biomet ZBH $105.57 $21,450 3.21

Lowest Price to Sales Ratio (TTM)

Company Symbol
Price
Mkt Cap
PSR
1 Aurora Spine ASG.V $0.08 $3 0.37
2 Amedica Corp AMDA $1.46 $6 0.56
3 Lattice Biologics LBL.V $0.04 $4 0.74
4 Alphatec Holdings ATEC $3.55 $91 0.89
5 RTI Surgical RTIX $4.70 $290 1.04

Highest Price to Sales Ratio (TTM)

Company Symbol
Price
Mkt Cap
PSR
1 TiGenix TIG.BR $2.17 $643 714.57
2 Nevro Corp NVRO $90.04 $2,696 8.25
3 Globus Medical GMED $50.66 $4,897 7.70
4 Pacira PCRX $33.45 $1,362 4.75
5 Stryker SYK $158.35 $59,082 4.75

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