we believe seamless surgical stock (NASDAQ
Looking at stock returns, both ABT and ISRG have underperformed the broader S&P 500 index by 16%, down more than 25% this year. There are many more to compare, and in the sections below we discuss why we believe ISRG stock will outperform ABT stock over the next three years. We compare multiple factors, such as historical revenue growth, returns and valuation multiples, in an interactive dashboard analysis Abbott vs Sahaj Surgical, Which stock is the better bet? Some parts of the analysis are summarized below.
1. Intuitive Surgical’s revenue growth is much better
- Intuitive Surgical’s revenue growth of 11.3% over the past twelve months surpassed Abbott’s 6.4%.
- Even looking over a longer period of time, Intuitive Surgical’s revenue growth has been better. This is expected to grow at an average annual growth rate of 16.2% to $5.7 billion in 2021 compared to $3.7 billion in 2018, while Abbott expects to reach $43.1 billion in 2021 at an average annual growth rate of 12 .4% compared to $30.6 billion in 2021. an average annual increase. ,
- Abbott’s revenue growth in recent years has been driven by high demand for COVID-19 testing. However, as the number of COVID-19 cases has declined in recent quarters, demand for testing is declining, weighing on Abbott’s diagnostics business.
- That said, the company’s medical devices and well-established pharmaceutical sales will continue to see steady growth in the coming years.
- For Sahaja Surgical, revenue growth in recent times has been driven by an uptick in procedure volumes, which were negatively impacted by shelter-in-place restrictions in the early stages of the pandemic. The company continues to expand its installed base resulting in higher recurring revenues such as consumables.
- That said, the stock has undergone a significant correction this year, due in part to the challenging macroeconomic environment and the second-quarter miss. This trend reversed after encouraging third quarter results and the company’s announcement of an additional $1 billion in share buybacks.
- U.S Abbott Income Equation And Intuitive comparison of surgical income Dashboards provide more information about the sales of the companies.
- Looking ahead, Intuitive Surgical’s revenue is expected to grow faster than Abbott’s over the next three years. The table below summarizes our revenue expectations for both companies for the next three years. This indicates a CAGR of 13.7% for Sahaj Surgicals compared to 4.2% CAGR for Abbott based on Trefis machine learning analysis.
- Please note that when forecasting future earnings, we have different methods for companies negatively impacted by COVID and those not or positively impacted by COVID. For companies negatively impacted by Covid, we factor in the quarterly revenue recovery trajectory to estimate the recovery at the pre-Covid revenue rate. Beyond the recovery point, we apply the average annual growth observed over the three years before Covid to simulate a return to normal. For companies reporting positive sales growth during Covid, we take into account the average annualized growth from before Covid, with a certain weighting for growth during Covid and the previous 12 months.
2. Abbott is more profitable
- Abbott’s operating margin of 22.1% over the next 12-month period is slightly better than Intuitive Surgical’s 20.5%.
- However, Sahaj Surgical’s operating margins have improved in recent years.
- In 2019, before the pandemic, these figures were 16.1% and 30.7% respectively.
- Sahaj Surgical’s free cash flow margin of 31.4% is also better than Abbott’s 22.9%.
- U.S Abbott operating income And Spontaneous surgical business income The dashboard contains more details.
- Given the financial exposure, Sahaj Surgical fares much better. The 0.5% debt as a percentage of equity is lower than 8.9% for Abbott, while the 61.7% cash as a percentage of assets is higher than 13.6% for the latter, meaning that the debt position of Intuitive Surgical is better. There’s more money cushion.
3. The network of everything
- We see that Sahaj Surgical has shown better revenue growth and offers lower financial risk with better leverage and a higher cash buffer. While its operating margin is currently slightly lower than Abbott’s, it has been improving in recent years. On the other hand, Abbott is available at relatively lower valuations.
- Looking at the outlook now, using P/S as a basis, given the high volatility in P/E and P/EBIT, we believe Intuitive Surgical is currently the better of the two, despite being more expensive.
- The table below summarizes our revenue and return expectations for both companies over the next three years and highlights expected returns 47% for spontaneous surgical procedures during this period and a 16% Based on Trefis’ machine learning analysis, the expected return for Abbott stock, meaning investors are better off buying ISRG from ABT – Abbott vs. Sahaj Surgical – which also explains how we arrived at these numbers.
While ISRG may outperform ABT, it’s useful to see how Abbott’s companions Rent based on the stats that matter. Here you will find other valuable comparisons for companies from different industries peer comparison,
In addition, the COVID-19 crisis has caused several price anomalies, which can provide attractive trading opportunities. For example, you’d be surprised how counterintuitive stock valuation is. xylem vs merc,
With, among other things, high inflation and interest rate hikes by the Fed, the share of ABT has fallen by 25% this year. Can it fall further? Compare to declines in previous market crashes to see how far Abbott shares can go. Here is the performance overview of all stocks in the past market crashes.
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