Why PODD Could Outperform Intuitive Surgical Stock
PODD is Intuitive Surgical’s peer in Health Care Equipment industry that has:
1) Lower valuation (P/OpInc) compared to Intuitive Surgical stock
2) But higher revenue and operating income growth
This disconnect between valuation and performance could mean that you are better off buying PODD stock vs. ISRG stock
Single stock can be risky, but there is a huge value to a broader diversified approach. If you seek an upside with less volatility than holding an individual stock, consider the High Quality Portfolio (HQ) – HQ has outperformed its benchmark – a combination of S&P 500, Russell, and S&P midcap index, and achieved returns exceeding 105% since its inception. Risk management is key – consider, what could long-term portfolio performance be if you blended 10% commodities, 10% gold, and 2% crypto with HQ’s performance metrics.
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- PODD Tops Intuitive Surgical Stock on Price & Potential
Key Metrics Compared
| Metric | ISRG | PODD |
|---|---|---|
| P/OpInc* | 63.0x | 56.9x |
| LTM OpInc Growth | 34.9% | 49.4% |
| 3Y Avg OpInc Growth | 16.9% | 86.5% |
| LTM Revenue Growth | 20.8% | 26.0% |
| 3Y Avg Revenue Growth | 15.4% | 26.1% |
OpInc = Operating Income, P/OpInc = Price To Operating Income Ratio
But do these numbers tell the full story? Read Buy or Sell ISRG Stock to see if Intuitive Surgical still has an edge that holds up under the hood. As a quick background, Intuitive Surgical (ISRG) provides innovative surgical systems that empower physicians to perform complex minimally invasive procedures, improving quality and access to healthcare worldwide.
This is just one approach to evaluate investments. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
Is The Mismatch In Stock Price Temporary
One way to check if Intuitive Surgical stock is expensive now versus the other tickers would be to see how these metrics compared across companies exactly a year ago. Specifically, if there has been a marked reversal in the trend for Intuitive Surgical in the last 12 months, then there is a chance that the current mismatch is likely to reverse. On the other hand, a persistent underperformance in revenue and operating income growth for Intuitive Surgical would reinforce the conclusion that the stock is expensive compared to its peers, but may not revert soon
Key Metrics Compared 1 Yr Prior
| Metric | ISRG | PODD |
|---|---|---|
| P/OpInc* | 75.3x | 48.8x |
| LTM OpInc Growth | 32.9% | 36.7% |
| 3Y Avg OpInc Growth | 12.5% | 254.9% |
| LTM Revenue Growth | 19.1% | 23.5% |
| 3Y Avg Revenue Growth | 13.9% | 24.5% |
OpInc = Operating Income
Additional Metrics To Consider
| Metric | ISRG | PODD |
|---|---|---|
| P/S | 18.1x | 9.8x |
| Market Cap (Current) | $ 165.9 Bil | $ 23.2 Bil |
| LTM Revenue | $ 9.15 Bil | $ 2.36 Bil |
| LTM Opinc | $ 2.63 Bil | $ 407.30 Mil |
| LTM Op Margin | 28.8% | 17.3% |
OpInc = Operating Income
Alternate buying based on valuation, while attractive, needs to be evaluated carefully from multiple angles. Such multi-factor analysis is exactly how we construct Trefis portfolio strategies. If you want upside with a smoother ride than an individual stock, consider the High Quality portfolio, which has outperformed the S&P, and clocked >91% returns since inception.