From Nasdaq:

Medtronic stock (NYSE: MDT) is a better investment option than Abbott stock (NYSE: ABT) based on a variety of factors. Although both companies have experienced fluctuations, MDT stock has an expected return of 13% versus a 6% expected return for ABT over the next three years using Trefis Machine Learning analysis. In addition, Abbott’s revenue growth was at 11% per year in the last three years, while Medtronic’s was 3%.

Looking at stock returns, MDT stock has faced a notable decline of 25% from levels of $115 in early January 2021 to around $85 now, while ABT stock has seen little change, remaining at levels of $110 over the same period. This compares with an increase of about 30% for the S&P 500 over this roughly three-year period.

Overall, the performance of ABT stock with respect to the index has been lackluster. Returns for the stock were 29% in 2021, -22% in 2022, and 0% in 2023. Also, MDT stock has underperformed the broader market in each of the last three years. Returns for the stock were -12% in 2021, -25% in 2022, and 6% in 2023. In comparison, returns for the S&P 500 were 27% in 2021, -19% in 2022, and 24% in 2023.

In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks, including heavyweights in the healthcare sector, including LLY, UNH, and JNJ, and even megacap stars GOOG, TSLA, and MSFT. In contrast, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has outperformed the S&P 500 each year over the same period. If we look at valuation multiples, MDT fares slightly better. Medtronic is trading at 3.6x trailing revenues versus the last five-year average of 4.3x. In contrast, Abbott is trading at 4.6x revenues, compared to its last five-year average of 5.4x.



Read more: Up Just 6% In 2023 Is Medtronic Stock A Better Pick Over Abbott?