Covidien (NYSE: COV) is one of 82 public companies in the “Medical Equipment, Supplies & Distribution” industry, but how does it compare to its rivals? We will compare Covidien to related businesses based on the strength of its valuation, analyst recommendations, earnings, risk, profitability, institutional ownership and dividends.

Volatility and Risk

Covidien has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Covidien’s rivals have a beta of 0.95, suggesting that their average share price is 5% less volatile than the S&P 500.

Earnings and Valuation

This table compares Covidien and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Covidien N/A N/A 27.43
Covidien Competitors $975.11 million $120.37 million 240.89

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Covidien and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Covidien 0 0 0 0 N/A
Covidien Competitors 211 1260 2729 95 2.63

As a group, “Medical Equipment, Supplies & Distribution” companies have a potential upside of 7.06%. Given Covidien’s rivals higher possible upside, analysts clearly believe Covidien has less favorable growth aspects than its rivals.

Institutional & Insider Ownership

65.6% of shares of all “Medical Equipment, Supplies & Distribution” companies are held by institutional investors. 12.0% of shares of all “Medical Equipment, Supplies & Distribution” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Covidien and its rivals’ 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 -421.19% -42.69% -12.37%

Covidien Company Profile

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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