5 key notes on Boston Scientific, Medtronic

Spinal Tech

Medtronic generates three times as much revenue as Boston Scientific, according to a Nasdaq report by Trefis investment analysts.

How the companies compare on five measures:

1. Revenue. Both device companies have seen revenue growth in recent years. Boston Scientific's revenue increased from $7.4 billion in 2014 to $9.8 billion by 2018. Medtronic's revenue hit $30.6 billion in fiscal year 2019, up from $20.3 billion in fiscal year 2015.

2. Compound annual growth rate. Medtronic's revenue grew at a higher average pace than Boston Scientific's. Boston Scientific's revenue grew at a compound annual growth rate of 7.5 percent between 2014 and 2018. The same rate for Medtronic was 12 percent between fiscal years 2015 and 2019.

3. Transactions. Acquisitions affected sales growth for both companies. Medtronic's growth in fiscal year 2016 was boosted by the Covidien acquisition. Boston Scientific's growth the same year was helped by the company's acquisitions of EndoChoice and the AMS product portfolio.

4. U.S. sales. Both companies generate over half their revenue from U.S. sales. The U.S. represented 56 percent of total sales for Boston Scientific in 2018, compared to 53 percent of total sales for Medtronic in fiscal year 2019.

5. Profitability. Boston Scientific's gross profit margin was slightly better than Medtronic's, growing from 70.1 percent in 2014 to 71.4 percent in 2018. Medtronic's gross profit margin grew from 68.9 percent in fiscal 2015 to 70 percent in fiscal 2019.

 

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