The Motley Fool·2025-10-26 08:39Core Insights - Intuitive Surgical and Medtronic are both involved in the surgical robotics market but cater to different investor preferences, with Intuitive Surgical focusing on growth and Medtronic appealing to income investors [1] Group 1: Intuitive Surgical - Intuitive Surgical is a leader in surgical robotics, with 10,763 da Vinci systems in use as of Q3 2025, representing a 13% year-over-year increase, and a 19% rise in procedures performed [2] - The Ion endoluminal system, a newer product, has shown rapid growth with a 30% increase in systems installed and a 52% increase in procedures performed, albeit from a smaller base of 954 systems [4] - Approximately 75% of Intuitive Surgical's revenue comes from the sale of instruments, accessories, and services, creating a recurring income stream that grows with each surgical system sold [5] - The stock has a high price-to-earnings ratio of over 60x and has experienced significant volatility, with price drops of 20% or more occurring three times since 2020 [7] - Recent positive earnings have renewed interest in Intuitive Surgical's shares, making it an attractive option for growth investors willing to accept volatility [11] Group 2: Medtronic - Medtronic offers a more stable investment option with a 3% dividend yield and is nearing its status as a Dividend King, having increased dividends for 48 consecutive years [8][9] - The company has a diversified product portfolio that includes cardiovascular, neuroscience, and diabetes products, although it is in the process of spinning off its diabetes division to focus on core opportunities [9][10] - Medtronic's market cap is $120 billion, with a current price of $93.67 and a gross margin of 59.81%, making it a more conservative choice for income-focused investors [10]