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Boston Scientific or Intuitive Surgical: Which Is a Better Pick?

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Better pick

Boston Scientific (BSX) and Intuitive Surgical (ISRG) are up 17.29% and 6.43%, respectively, YTD (year-to-date). While Boston Scientific is a leading diversified medical device player, Intuitive Surgical is a dominant player in the robotic surgery space. To evaluate which of the two is a better pick in the long run, let’s evaluate the various pros and cons of each.

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Analysts’ recommendations and target prices

Analysts’ consensus recommendation for Boston Scientific is a “strong buy,” while their recommendation for Intuitive Surgical is a “buy.”

Wall Street analysts expect an upside of 5.33% for Boston Scientific based on the company’s closing price on June 10. Analysts gradually increased the company’s 12-month consensus target price from $44.07 in March to $44.35 in April but then reduced it to $43.70 in May and $43.66 in June. Its highest and lowest target price estimates are $48 and $41, respectively.

Of the 23 analysts covering Boston Scientific, 15 have given it “strong buys,” seven have given it “buys,” and one has given it a “hold.”

Wall Street analysts expect an upside of 15.10% for Intuitive Surgical based on the company’s closing price on June 10. Analysts first increased the company’s 12-month consensus target price from $578.06 in March to $595.82 in April but then reduced it to $576.63 in May and $574.38 in June. Its highest and lowest target price estimates are $625 and $375, respectively.

Of the 19 analysts covering Intuitive Surgical, seven have given it “strong buys,” six have given it “buys,” five have given it “holds,” and one has given it a “sell.”

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Share price movements and valuation

On June 10, Boston Scientific closed at $41.45, 0.41% higher than its previous day’s close, 33.54% higher than its 52-week low of $31.04, and 0.46% lower than its 52-week high of $41.64. The company’s market cap was $57.52 billion, and its PE, forward PE, PEG (PE-to-growth), PS (price-to-sales), PB (price-to-book), and PC (price-to-cash) ratios were 33.45x, 23.18x, 2.74x, 5.79x, 6.23x, and 413.81x, respectively.

On June 10, Intuitive Surgical closed at $509.72, 2.14% higher than its previous day’s close, 18.47% higher than its 52-week low of $430.24, and 13.51% lower than its 52-week high of $589.32. The company’s market cap was $58.62 billion, and its PE, forward PE, PEG, PS, PB, and PC ratios were 53.38x, 37.75x, 4.38x, 15.22x, 8.35x, and 20.87x, respectively.

Compared to Boston Scientific, Intuitive Surgical is trading at higher PE, forward PE, PEG, PS, and PB ratios but at a lower PC ratio.

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