GE HealthCare Technologies (GEHC) versus The Competition Critical Analysis

GE HealthCare Technologies (NASDAQ:GEHC) is one of 143 publicly-traded companies in the “MED PRODUCTS” industry, but how does it weigh in compared to its competitors? We will compare GE HealthCare Technologies to similar companies based on the strength of its analyst recommendations, risk, dividends, valuation, profitability, earnings and institutional ownership.

Profitability

This table compares GE HealthCare Technologies and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GE HealthCare Technologies	11.02%	24.95%	6.38%
GE HealthCare Technologies Competitors	-26.13%	-30.13%	-6.94%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for GE HealthCare Technologies and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GE HealthCare Technologies	0	3	8	1	2.83
GE HealthCare Technologies Competitors	766	3720	7526	285	2.60

GE HealthCare Technologies currently has a consensus target price of $88.55, indicating a potential upside of 16.57%. As a group, “MED PRODUCTS” companies have a potential upside of 44.17%. Given GE HealthCare Technologies’ competitors higher possible upside, analysts plainly believe GE HealthCare Technologies has less favorable growth aspects than its competitors.

Dividends

GE HealthCare Technologies pays an annual dividend of $0.14 per share and has a dividend yield of 0.2%. GE HealthCare Technologies pays out 2.9% of its earnings in the form of a dividend. As a group, “MED PRODUCTS” companies pay a dividend yield of 1.4% and pay out 40.5% of their earnings in the form of a dividend. GE HealthCare Technologies has raised its dividend for 1 consecutive years.

Volatility and Risk

GE HealthCare Technologies has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, GE HealthCare Technologies’ competitors have a beta of 2.72, meaning that their average share price is 172% more volatile than the S&P 500.

Valuation & Earnings

This table compares GE HealthCare Technologies and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
GE HealthCare Technologies	$19.67 billion	$1.99 billion	15.99
GE HealthCare Technologies Competitors	$2.83 billion	$246.14 million	4.17

GE HealthCare Technologies has higher revenue and earnings than its competitors. GE HealthCare Technologies is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

82.1% of GE HealthCare Technologies shares are owned by institutional investors. Comparatively, 44.3% of shares of all “MED PRODUCTS” companies are owned by institutional investors. 0.3% of GE HealthCare Technologies shares are owned by insiders. Comparatively, 12.4% of shares of all “MED PRODUCTS” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

GE HealthCare Technologies beats its competitors on 11 of the 15 factors compared.

GE HealthCare Technologies Company Profile

GE HealthCare Technologies Inc. engages in the development, manufacture, and marketing of products, services, and complementary digital solutions used in the diagnosis, treatment, and monitoring of patients in the United States, Canada, and internationally. The company operates through four segments: Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics. The Imaging segment offers molecular imaging, computed tomography (CT) scanning, magnetic resonance (MR) imaging, image-guided therapy, X-ray systems, and women’s health products. The Ultrasound segment provides medical devices and solutions for screening, diagnosis, treatment, and monitoring of certain diseases in clinical areas, such as radiology and primary care, women’s health, cardiovascular, and point of care and handheld ultrasound solutions, as well as surgical visualization and guidance products. The Patient Care Solutions segment provides medical devices, consumables, services, and digital solutions. Its portfolio includes patient monitoring solutions, anesthesia delivery and respiratory care products, electrocardiogram solutions, maternal infant care products, and consumables and services. The Pharmaceutical Diagnostics supplies diagnostic agents, including CT, angiography and X-ray, MR, single-photon emission computed tomography, positron emission tomography, and ultrasound to the radiology and nuclear medicine industry. The segment also provides contrast media pharmaceuticals that are administered to a patient prior to certain diagnostic scans to increase the visibility of tissues or structures during imaging exams; and molecular imaging agents or radiopharmaceuticals, which are molecular tracers labeled with radioisotopes. It has an AI collaboration with Mass General Brigham. The company was formerly known as GE Healthcare Holding LLC and changed its name to GE HealthCare Technologies Inc. in December 2022. The company was incorporated in 2022 and is headquartered in Chicago, Illinois.