Top 15 Most Profitable Healthcare Stocks

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 |  Includes: BCR, BLUD, ENDP, EW, ISRG, JNJ, MASI, MD, MDT, MGLN, MRK, MSA, MYGN, STJ, ZBH
by: Kapitall

The following is a list of the most profitable healthcare stocks, based on average gross and net profit margins over the last five years.

To compile this list, we started with a universe of about 120 healthcare stocks. We then narrowed the list by only focusing on those stocks that have higher gross and net profit margins compared to industry averages.

We're not going to go into detailed analysis for each company. The goal here is to give you a starting point for your own analysis.

Profitability data and industry comps sourced from Reuters, short float and performance data sourced from Finviz.



1. MEDNAX, Inc. (NYSE:MD): Specialized Health Services Industry. Market cap of $3.03B. 5-year average gross margin at 96.13% vs. industry average at 48.31%. 5-year average net profit margin at 14.08% vs. industry average at 4.44%. Short float at 4.15%, which implies a short ratio of 6.79 days. The stock has gained 11.63% over the last year.

2. Medtronic, Inc. (NYSE:MDT): Medical Appliances & Equipment Industry. Market cap of $36.65B. 5-year average gross margin at 75.19% vs. industry average at 47.31%. 5-year average net profit margin at 18.74% vs. industry average at 6.77%. Short float at 1%, which implies a short ratio of 1.56 days. The stock has lost -19.42% over the last year.

3. Intuitive Surgical, Inc. (NASDAQ:ISRG): Medical Appliances & Equipment Industry. Market cap of $10.62B. 5-year average gross margin at 69.93% vs. industry average at 47.31%. 5-year average net profit margin at 23.9% vs. industry average at 6.77%. Short float at 6.51%, which implies a short ratio of 4.14 days. The stock has lost -7.47% over the last year.

4. Mine Safety Appliances Co. (NYSE:MSA): Medical Appliances & Equipment Industry. Market cap of $1.09B. 5-year average gross margin at 37.84% vs. industry average at 24.9%. 5-year average net profit margin at 6.69% vs. industry average at 2.71%. Short float at 4.93%, which implies a short ratio of 13.67 days. The stock has gained 17.51% over the last year.

5. St. Jude Medical Inc. (NYSE:STJ): Medical Appliances & Equipment Industry. Market cap of $13.35B. 5-year average gross margin at 72.82% vs. industry average at 47.31%. 5-year average net profit margin at 13.71% vs. industry average at 6.77%. Short float at 1.58%, which implies a short ratio of 1.81 days. The stock has gained 10.16% over the last year.

6. Merck & Co. Inc. (NYSE:MRK): Drug Manufacturers Industry. Market cap of $108.6B. 5-year average gross margin at 73.45% vs. industry average at 48.19%. 5-year average net profit margin at 27.82% vs. industry average at 13.26%. Short float at 0.59%, which implies a short ratio of 1.31 days. The stock has gained 0.17% over the last year.

7. Endo Pharmaceuticals Holdings Inc. (NASDAQ:ENDP): Drug Manufacturers Industry. Market cap of $4.17B. 5-year average gross margin at 77.19% vs. industry average at 48.19%. 5-year average net profit margin at 19.67% vs. industry average at 13.26%. Short float at 5.76%, which implies a short ratio of 4.22 days. The stock has gained 72.63% over the last year.

8. Myriad Genetics Inc. (NASDAQ:MYGN): Drug Manufacturers Industry. Market cap of $2.B. 5-year average gross margin at 84.6% vs. industry average at 58.79%. 5-year average net profit margin at 37.08% vs. industry average at 13.88%. Short float at 5.89%, which implies a short ratio of 5.24 days. The stock has lost -10.02% over the last year.

9. Magellan Health Services Inc. (NASDAQ:MGLN): Health Care Plans Industry. Market cap of $1.66B. 5-year average gross margin at 9.11% vs. industry average at 5.27%. 5-year average net profit margin at 4.6% vs. industry average at 3.47%. Short float at 4.86%, which implies a short ratio of 5.64 days. The stock has gained 36.11% over the last year.

10. Masimo Corporation (NASDAQ:MASI): Medical Appliances & Equipment Industry. Market cap of $1.86B. 5-year average gross margin at 70.46% vs. industry average at 50.5%. 5-year average net profit margin at 27.59% vs. industry average at 10.3%. Short float at 13.14%, which implies a short ratio of 12.89 days. The stock has gained 13.03% over the last year.

11. Zimmer Holdings, Inc. (ZMH): Medical Appliances & Equipment Industry. Market cap of $9.86B. 5-year average gross margin at 76.8% vs. industry average at 50.5%. 5-year average net profit margin at 20.69% vs. industry average at 10.3%. Short float at 3.89%, which implies a short ratio of 3.38 days. The stock has lost -15.26% over the last year.

12. Immucor Inc. (NASDAQ:BLUD): Diagnostic Substances Industry. Market cap of $1.29B. 5-year average gross margin at 70.46% vs. industry average at 50.5%. 5-year average net profit margin at 25.43% vs. industry average at 10.3%. Short float at 4.16%, which implies a short ratio of 3.57 days. The stock has lost -5.35% over the last year.

13. CR Bard Inc. (NYSE:BCR): Medical Instruments & Supplies Industry. Market cap of $7.99B. 5-year average gross margin at 61.44% vs. industry average at 47.31%. 5-year average net profit margin at 17.78% vs. industry average at 6.77%. Short float at 4.16%, which implies a short ratio of 6.06 days. The stock has gained 4.51% over the last year.

14. Johnson & Johnson (NYSE:JNJ): Drug Manufacturers Industry. Market cap of $170.82B. 5-year average gross margin at 71.17% vs. industry average at 48.19%. 5-year average net profit margin at 19.58% vs. industry average at 13.26%. Short float at 1.05%, which implies a short ratio of 2.79 days. The stock has gained 0.05% over the last year.

15. Edwards Lifesciences Corp. (NYSE:EW): Medical Appliances & Equipment Industry. Market cap of $7.83B. 5-year average gross margin at 65.79% vs. industry average at 47.31%. 5-year average net profit margin at 11.98% vs. industry average at 6.77%. Short float at 2.37%, which implies a short ratio of 2.72 days. The stock has gained 64.51% over the last year.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.