Critical Review: Getinge AB (publ) (OTCMKTS:GNGBY) & CONMED (NYSE:CNMD)

Getinge AB (publ) (OTCMKTS:GNGBY) and CONMED (NYSE:CNMD) are both mid-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.

Dividends

Getinge AB (publ) pays an annual dividend of $0.23 per share and has a dividend yield of 1.1%. CONMED pays an annual dividend of $0.80 per share and has a dividend yield of 1.1%. Getinge AB (publ) pays out 29.1% of its earnings in the form of a dividend. CONMED pays out 30.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Getinge AB (publ) is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Getinge AB (publ) has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, CONMED has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Getinge AB (publ) and CONMED, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Getinge AB (publ)	0	0	0	0	N/A
CONMED	0	1	4	0	2.80

CONMED has a consensus price target of $79.80, indicating a potential upside of 6.74%. Given CONMED’s higher possible upside, analysts clearly believe CONMED is more favorable than Getinge AB (publ).

Profitability

This table compares Getinge AB (publ) and CONMED’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Getinge AB (publ)	7.76%	8.56%	4.97%
CONMED	7.73%	13.89%	5.07%

Earnings and Valuation

This table compares Getinge AB (publ) and CONMED”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Getinge AB (publ)	$3.00 billion	1.95	$227.45 million	$0.79	27.13
CONMED	$1.28 billion	1.80	$64.46 million	$2.61	28.64

Getinge AB (publ) has higher revenue and earnings than CONMED. Getinge AB (publ) is trading at a lower price-to-earnings ratio than CONMED, indicating that it is currently the more affordable of the two stocks.

Summary

CONMED beats Getinge AB (publ) on 7 of the 13 factors compared between the two stocks.

About Getinge AB (publ)

Getinge AB (publ) provides products and solutions for operating rooms, intensive-care units, and sterilization departments. The company operates through Acute Care Therapies, Life Science, and Surgical Workflows segments. It offers extracorporeal membrane oxygenation, mechanical ventilation, mechanical circulatory support, advanced patient monitoring, ICU infrastructure equipment, patient flow management, and drainage solutions. The company also provides surgical perfusion, endoscopic vessel harvesting, intra-aortic balloon counterpulsation, and drainage solutions; and operating room infrastructure equipment, anesthesia, advanced patient monitoring, operating room management, and operating room integration solutions. In addition, it offers pre-cleaning, cleaning and disinfection, sterilization, consumables, endoscope reprocessing, and sterile supply management solutions; connected medical devices; bioreactor systems, DPTE systems, Getinge isolators, terminal sterilization products, and sterilizers; and vivarium, biohazardous materials handling solutions, labware cleaning and sterilization, upstream bioprocessing, and bioreactor preparation solutions. It offers its products through a network of sales companies, as well as through agents and distributors in the Americas, Europe, the Middle East, Africa, and the Asia and Pacific. Getinge AB (publ) was founded in 1904 and is headquartered in Gothenburg, Sweden.

About CONMED

CONMED Corporation, a medical technology company, develops, manufactures, and sells surgical devices and related equipment for surgical procedures worldwide. The company offers orthopedic surgery products, including BioBrace, TruShot with Y-Knot All-In-One Soft Tissue Fixation System, Y-knot All-Suture Anchors, and Agro Knotless Suture Anchors, which provide clinical solutions to orthopedic surgeons for the augmentation and repair of soft tissue injuries, as well as provides supporting products that enable surgeons to perform minimally invasive sports medicine surgeries. It markets orthopedic surgery products under the Hall, CONMED Linvatec, Concept, and Shutt brands. The company also provides battery-powered and autoclavable bone power tool systems for use in orthopedic, arthroscopic, oral/maxillofacial, podiatric, spinal, and cardiothoracic surgeries under Hall surgical brand name. In addition, it offers general surgery products, including clinical insufflation systems under AirSeal brand; smoke removal devices under Buffalo Filter brand; endomechanical products, such as tissue retrieval bags, trocars, suction irrigation devices, graspers, scissors, and dissectors used in minimally invasive surgeries; and electrosurgical solution comprising monopolar and bipolar generators, argon beam coagulation generators, handpieces, smoke management systems and other accessories. Further, the company provides endoscopic technologies, including therapeutic and diagnostic products for use in gastroenterology procedures, and products for the treatment of diseases of the dilatation, hemostasis, biliary, structure management, and infection prevention and patient monitoring, including ECG and EEG electrodes, and cardiac defibrillation pads. It markets its products directly to hospitals, surgery centers, and other healthcare institutions, as well as through medical specialty distributors. CONMED Corporation was incorporated in 1970 and is headquartered in Largo, Florida.