Better Value & Growth: PODD Leads Intuitive Surgical Stock

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Trefis
ISRG: Intuitive Surgical logo
ISRG
Intuitive Surgical

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

Individual stocks can soar or tank but one thing matters: staying invested. High Quality Portfolio helps you do that.

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  2. Intuitive Surgical Stock: Join the Rally at a 11% Discount
  3. Better Value & Growth: PODD Leads Intuitive Surgical Stock
  4. With Intuitive Surgical Stock Surging, Have You Considered The Downside?
  5. PODD Tops Intuitive Surgical Stock on Price & Potential
  6. Intuitive Surgical Stock To $699?

Key Metrics Compared

Metric ISRG PODD
P/OpInc* 71.9x 49.8x
LTM OpInc Growth 36.4% 42.9%
3Y Avg OpInc Growth 20.2% 93.6%
LTM Revenue Growth 22.2% 27.1%
3Y Avg Revenue Growth 16.3% 26.6%

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* 73.7x 46.6x
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

Additional Metrics To Consider

Metric ISRG PODD
P/S 16.6x 8.6x
Market Cap (Current) $ 202.4 Bil $ 21.7 Bil
LTM Revenue $ 9.61 Bil $ 2.52 Bil
LTM Opinc $ 2.82 Bil $ 437.00 Mil
LTM Op Margin 29.3% 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 its benchmark – a combination of S&P 500, Russell, and S&P midcap index.