Boston Scientific Corporation (BSX), Medtronic, Inc. (MDT): This Momentum Play Might Make You Money

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St. Jude Medical, Inc. (NYSE:STJ) saw revenue and earnings declines in 2012; but they weren’t significant declines, and the company had shown continuous improvements in previous years. St. Jude Medical, Inc. (NYSE:STJ) sports a healthy profit margin of 14.01%, which demonstrates good efficiency. Its dividend currently yields 2.10% (Boston Scientific doesn’t offer a dividend,) and dividend payments should stay intact thanks to quality debt management. St. Jude Medical, Inc. (NYSE:STJ) looks to be a safer play than Boston Scientific going forward. However, it’s not likely to be the best option in the space.

Medtronic, Inc. (NYSE:MDT) is a much larger company than Boston Scientific and St. Jude Medical, Inc. (NYSE:STJ), and it’s also the most impressive. Revenue and earnings have steadily grown through the years, which is exactly what long-term investors want to see. This steady growth indicates strong management that doesn’t make bad investments or get too excited about expansion. Medtronic, Inc. (NYSE:MDT) demonstrates top-notch efficiency with a profit margin of 20.90%. Medtronic, Inc. (NYSE:MDT) also yields 2.10%, and dividend payments should stay intact thanks to quality debt and capital management.

Medtronic, Inc. (NYSE:MDT) recently lost a heart valve patent fight in Germany, but this should be treated as a non-event. If anything, it should be looked at as an opportunity to buy if the stock takes a hit on the news. This news won’t affect more than 0.5% of revenue for the company, and Medtronic, Inc. (NYSE:MDT) has reaffirmed its FY2013 revenue guidance.

Conclusion

Boston Scientific is enjoying strong upward stock momentum, and that definitely has the potential to continue. If you’re looking for a momentum play, then it’s not a bad option. And if you’re a long-term investor that’s looking to side with top-tier management and proven results, then Medtronic, Inc. (NYSE:MDT) should be your best bet.

The article This Momentum Play Might Make You Money originally appeared on Fool.com is written by Dan Moskowitz.

Dan Moskowitz has no position in any stocks mentioned. The Motley Fool owns shares of Medtronic. Dan is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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