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How Did Cooper Companies and Its Peers Perform?

Gabriel Kane

What You Need to Know of Cooper Companies' Fiscal 4Q15 Earnings

(Continued from Prior Part)

ETFs that invest in Cooper Companies

The SPDR S&P Health Care Equipment ETF (XHE) invests 1.9% of its holdings in Cooper. Also, the SPDR S&P 400 Mid-Cap Growth ETF (MDYG) invests 1.0% of its holdings in Cooper. The MDYG ETF tracks a market-cap-weighted index of growth companies culled from the S&P 400. Next, the Vanguard S&P Mid-Cap 400 Growth ETF (IVOG) invests 0.94% of its holdings in Cooper. This ETF tracks a market-cap-weighted index of growth companies culled from the S&P 400.

And finally, the PowerShares Russell 2000 Pure Growth ETF (PXSG) invests 0.93% of its holdings in Cooper. The ETF tracks an index of US-listed small-cap growth stocks, selected and weighted by the price-to-book ratio, forecast growth, and historical sales growth.

Comparing Cooper Companies and its ETFs

Here, let’s compare Cooper with the ETFs that invest in it:

  • The year-to-date price movements of Cooper Companies (COO), XHE, MDYG, IVOG, and PXSG are -12.3%, 10.6%, 5.0%, 5.3%, and 4.5%, respectively.
  • The PE (price-to-earnings) ratios of Cooper, XHE, MDYG, IVOG, and PXSG are 35.3x, 95.9x, 25.6x, 25.6x, and 65.7x, respectively.
  • The PBV (price-to-book value) ratios of Cooper, XHE, MDYG, IVOG, and PXSG are 2.6x, 3.8x, 3.6x, 3.6x, and 5.7x, respectively.

So, the ETFs have outperformed Cooper Companies based on price movement and PBV.

Cooper Companies and its peers

Now that we have compared Cooper with its ETFs, let’s do the same for some of its peers in the industry:

  • The PE ratios of Cooper and Johnson & Johnson (JNJ) are 35.3x, and 19.3x, respectively, as of December 3, 2015.
  • The PBV ratios of Cooper, Johnson & Johnson, Boston Scientific (BSX), and Hologic (HOLX) are 2.6x, 3.9x, 3.8x, and 5.3x, respectively.

As a result, peers are ahead of Cooper Companies based on PBV.

You can visit Market Realist’s Medical Devices page for an in-depth fundamental analysis of the sector.

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