Intuitive Surgical, Inc. (ISRG), MAKO Surgical Corp. (MAKO): Is This Health Care Stock Too Risky to Buy?

Quite simply, Johnson & Johnson (NYSE:JNJ) is one of the safest stocks to buy. J&J is a $245 billion company by market capitalization and does not exhibit nearly the volatility in its underlying operations as Intuitive Surgical, Inc. (NASDAQ:ISRG) has over the past year.

Consider also that Johnson & Johnson (NYSE:JNJ) is one of the premier dividend-paying stocks in existence. The company has increased its dividend for a spectacular 51 years in a row and yields 3% at recent prices. Furthermore, its rock-solid business model is exemplified by the fact that J&J is one of only four U.S.-based companies to hold the coveted triple-A credit rating from Standard & Poor’s.

Johnson & Johnson (NYSE:JNJ) is the company behind Listerine mouthwash and Band-Aids, and also has a significant medical devices segment. Therefore, J&J can offer investors exposure to the surgical device market with the added safety of strong consumer brands.

What should investors do now?
While I believe Intuitive Surgical, Inc. (NASDAQ:ISRG)’s da Vinci robots are truly a revolutionary technology, it needs to be acknowledged that progress has been extremely slow in recovering from the tumultuous developments of the past year.

It is a difficult task for investors to endure an entire year of little to no growth from a stock that routinely posted double-digit growth in both sales and profits for so long. At the same time, investors can take solace in the fact that they’re receiving a more advantageous buying opportunity than at any time in recent history.  After trading above $580 per share as recently as February, the stock now exchanges hands for just $385 per share.

It’s certainly true that Johnson & Johnson (NYSE:JNJ) provides a less risky alternative than Intuitive Surgical, Inc. (NASDAQ:ISRG).  However, for patient investors, I believe Intuitive Surgical will deliver strong returns once it can find itself free of regulatory scrutiny, and that its current price represents a unique buying opportunity.

The article Is This Health Care Stock Too Risky to Buy? originally appeared on Fool.com and is written by Robert Ciura.

Robert Ciura has no position in any stocks mentioned. The Motley Fool recommends Intuitive Surgical, Johnson & Johnson, and MAKO Surgical. The Motley Fool owns shares of Intuitive Surgical and Johnson & Johnson.

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