Critical Analysis: SNDL (NASDAQ:SNDL) and Stryker (NYSE:SYK)

Stryker (NYSE:SYK) and SNDL (NASDAQ:SNDL) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Institutional & Insider Ownership

77.1% of Stryker shares are held by institutional investors. 5.2% of Stryker shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Stryker has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, SNDL has a beta of 3.7, meaning that its share price is 270% more volatile than the S&P 500.

Earnings & Valuation

This table compares Stryker and SNDL”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stryker	$24.38 billion	5.70	$2.99 billion	$7.61	47.79
SNDL	$671.81 million	0.72	-$69.18 million	($0.26)	-7.12

Stryker has higher revenue and earnings than SNDL. SNDL is trading at a lower price-to-earnings ratio than Stryker, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Stryker and SNDL, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stryker	0	6	13	0	2.68
SNDL	1	0	1	0	2.00

Stryker currently has a consensus target price of $433.37, suggesting a potential upside of 19.16%. SNDL has a consensus target price of $4.50, suggesting a potential upside of 143.24%. Given SNDL’s higher probable upside, analysts plainly believe SNDL is more favorable than Stryker.

Profitability

This table compares Stryker and SNDL’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stryker	12.25%	23.94%	11.08%
SNDL	-9.66%	-8.28%	-6.95%

Summary

Stryker beats SNDL on 12 of the 14 factors compared between the two stocks.

About Stryker

Stryker Corporation operates as a medical technology company. The company operates through two segments, MedSurg and Neurotechnology, and Orthopaedics and Spine. The Orthopaedics and 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 include fixation, minimally invasive and interbody systems used in spinal injury, complex spine and degenerative therapies. The MedSurg and Neurotechnology segment offers surgical equipment, and surgical navigation systems, endoscopic and communications systems, patient handling, emergency medical equipment and intensive care disposable products, reprocessed and remanufactured medical devices, clinical communication and workflow solutions, and other medical device products that are used in various medical specialties, as well as patient and caregiver safety technologies. This segment also provides neurosurgical, neurovascular and craniomaxillofacial implant products, which include products used for minimally invasive endovascular procedures; 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 for the treatment of acute ischemic and hemorrhagic stroke; and craniomaxillofacial implant products, including cranial, maxillofacial, and chest wall devices, as well as dural substitutes and sealants. The company sells its products to doctors, hospitals, and other healthcare facilities through company-owned subsidiaries and branches, as well as third-party dealers and distributors in approximately 75 countries. Stryker Corporation was founded in 1941 and is headquartered in Portage, Michigan.

About SNDL

SNDL Inc. engages in the production, distribution, and sale of cannabis products in Canada. The company operates through Liquor Retail, Cannabis Retail, Cannabis Operations, and Investments segments. It engages in the cultivation, distribution, and sale of cannabis for the adult-use and medical markets; sells wines, beers, and spirits through wholly owned liquor stores; and private sale of recreational cannabis through wholly owned and franchised retail cannabis stores. In addition, the company produces and distributes inhalable products, such as flower, pre-rolls, and vapes. It offers its products under the Top Leaf, Sundial Cannabis, Palmetto, and Grasslands brands. The company was formerly known as Sundial Growers Inc. and changed its name to SNDL Inc. in July 2022. SNDL Inc. was incorporated in 2006 and is headquartered in Calgary, Canada.