Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, medical-device giant Medtronic
With that in mind, let's take a closer look at Medtronic's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Minneapolis (1949)|
|Market Cap||$41.12 billion|
|Industry||Health care equipment|
|Trailing-12-Month Revenue||$15.72 billion|
|Management||Chairman/CEO William Hawkins, III
CFO Gary Ellis
|Return on Equity (Average, Past 3 Years)||18.8%|
|Cash/Debt||$3.54 billion / $10.56 billion|
Johnson & Johnson
St. Jude Medical
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 95% of the 1,649 members who have rated Medtronic believe the stock will outperform the S&P 500 going forward. These bulls include chucksauce and Motley Fool Rising Star Bryan Hinmon (TMF42).
Late last year, chucksauce tapped Medtronic as a particularly healthy choice: "Innovative, market leader, willing to invest a considerable amount of its cash to R&D to make sure it stays on top. Will recover with the industry over the next 5+ yrs."
Currently, Medtronic trades with a forward P/E of 10.5. That's a discount to rivals Boston Scientific (14.5), Johnson & Johnson (11.8), and St. Jude (11.3), as well as other medical device plays like Intuitive Surgical
(1) Size matters: [Medtronic] has an edge in global distribution and prowess/experience in appeasing health regulators for efficacy data. (2) R&D: [Medtronic] spends consistently more on R&D than its peers and links bonuses with R&D success. (3) [Medtronic] has plenty of room to run internationally, with only 40% of sales from abroad and only 7% from emerging markets. (4) Aging population and western medicine spreading. (5) It's cheap! Cash flows are strong and the market is too pessimistic.
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