Analyzing Stryker (NYSE:SYK) & Arch Therapeutics (OTCMKTS:ARTH)

Stryker (NYSE:SYKGet Rating) and Arch Therapeutics (OTCMKTS:ARTHGet Rating) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Valuation and Earnings

This table compares Stryker and Arch Therapeutics’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stryker $17.11 billion 5.60 $1.99 billion $6.43 39.34
Arch Therapeutics $20,000.00 78,715.35 -$5.28 million N/A N/A

Stryker has higher revenue and earnings than Arch Therapeutics.

Profitability

This table compares Stryker and Arch Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stryker 13.69% 22.27% 9.68%
Arch Therapeutics -36,223.82% N/A -258.63%

Analyst Recommendations

This is a summary of recent ratings and target prices for Stryker and Arch Therapeutics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stryker 0 7 12 0 2.63
Arch Therapeutics 0 0 0 0 N/A

Stryker presently has a consensus price target of $260.68, indicating a potential upside of 3.06%. Given Stryker’s higher possible upside, analysts clearly believe Stryker is more favorable than Arch Therapeutics.

Insider & Institutional Ownership

77.1% of Stryker shares are held by institutional investors. Comparatively, 0.0% of Arch Therapeutics shares are held by institutional investors. 6.5% of Stryker shares are held by insiders. Comparatively, 9.7% of Arch Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Stryker has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Arch Therapeutics has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.

Summary

Stryker beats Arch Therapeutics on 9 of the 11 factors compared between the two stocks.

About Stryker

(Get Rating)

Stryker Corp. operates as a medical technology company. It operates through the following segments: Orthopaedics & Spine and MedSurg & Neurotechnology. The Orthopaedics & Spine segment provides implants for use in total joint replacements, such as hip, knee, and shoulder, and trauma and extremities surgeries. This segment also offers spinal implant products comprising cervical and thoracolumbar systems that are used in spinal injury, complex spine and degenerative therapies. The MedSurg and Neurotechnology segment offers surgical equipment, patient & caregiver safety technologies, and surgical navigation systems, endoscopic and communications systems, patient handling, emergency medical equipment and intensive care disposable products, reprocessed and remanufactured medical devices, and other medical device products that are used in various medical specialties. This segment also provides neurotechnology products, which include products used for minimally invasive endovascular techniques, products for brain and open skull based surgical procedures, orthobiologic and biosurgery products, such as synthetic bone grafts and vertebral augmentation products, minimally invasive products fo

About Arch Therapeutics

(Get Rating)

Arch Therapeutics, Inc., together with its subsidiaries, operates as a biotechnology company in the United States. The company develops and markets products based on its AC5 self-assembling technology platform to stop bleeding and control leaking, as well as manages wounds during surgery, trauma, and interventional care or from disease. Its flagship products include AC5 advanced wound system and AC5 topical hemostat, which are intended for skin applications, such as management of complicated chronic wounds or acute surgical wounds. The company was founded in 2006 and is based in Framingham, Massachusetts.

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