Globus Medical Inc (GMED): This Medical Device Maker Looks Like a Good Pick

Stryker Corporation (NYSE:SYK) is the biggest company of the trio, with $25.4 billion in total market cap. It also has a high valuation with the EV multiple at 11.77. In the beginning of this year, Stryker spent around $764 million in cash to acquire Trauson Holdings, the leading trauma maker in China. Stryker Corporation (NYSE:SYK) expects that this acquisition would be a critical step to expanding its footprint in the growing Chinese orthopedic market. Stryker could take advantage of Trauson’s manufacturing capabilities, and especially, its distribution network in China.

What I like about Stryker is its consistently growing dividend payments in the past ten years. The dividend has risen from $0.07 per share in 2003 to $0.90 per share in 2012. At the current trading price, Styker offers shareholders a decent dividend yield of 1.50%. Both of its small peers, Globus Medical Inc (NYSE:GMED) and NuVasive, have not paid any dividends yet.

My Foolish take

Among the three, I like Globus Medical Inc (NYSE:GMED) the most with its lowest EV multiple and debt-free balance sheet. Wall Street expects the company to generate more than $488 million in revenue and $0.93 in EPS, a higher growth rate than industry peers.

The article This Medical Device Maker Looks Like a Good Pick originally appeared on Fool.com and is written by Anh Hoang.

Anh HOANG has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Anh 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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