Covidien (NYSE: COV) is one of 84 public companies in the “Medical Equipment, Supplies & Distribution” industry, but how does it contrast to its competitors? We will compare Covidien to related companies based on the strength of its valuation, dividends, profitability, analyst recommendations, earnings, risk and institutional ownership.

Volatility & Risk

Covidien has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, Covidien’s competitors have a beta of 1.07, indicating that their average stock price is 7% more volatile than the S&P 500.

Earnings and Valuation

This table compares Covidien and its competitors revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Covidien N/A N/A 1.27
Covidien Competitors $1.03 billion $127.56 million 209.15

Covidien’s competitors have higher revenue and earnings than Covidien. Covidien is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Covidien and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Covidien 19.02% 20.06% 9.92%
Covidien Competitors -123.66% -41.58% -10.77%

Analyst Recommendations

This is a summary of current ratings for Covidien and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Covidien 0 0 0 0 N/A
Covidien Competitors 204 1195 2670 86 2.63

As a group, “Medical Equipment, Supplies & Distribution” companies have a potential upside of 7.16%. Given Covidien’s competitors higher possible upside, analysts clearly believe Covidien has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

67.2% of shares of all “Medical Equipment, Supplies & Distribution” companies are held by institutional investors. 11.7% of shares of all “Medical Equipment, Supplies & Distribution” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Covidien competitors beat Covidien on 5 of the 8 factors compared.

About Covidien

Covidien Public Limited Company is a healthcare products company. The Company is engaged in the development, manufacture and sale of healthcare products for use in clinical and home settings. The Company’s brands include Kendall, Nellcor, Puritan Bennett and Valleylab, among others. It has a presence in more than 70 countries, with products sold in over 150 countries. The Company’s segments include Medical Devices and United States Medical Supplies. Medical Devices includes marketing of advanced and general surgical solutions, peripheral vascular and neurovascular therapies, patient monitoring products, and airway and ventilation products. United States Medical Supplies includes products, such as nursing care, medical surgical, SharpSafety and original equipment manufacturer (OEM) products. The Company’s products include Surgical Solutions, Vascular Therapies, Respiratory and Patient Care.

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