Intuitive Surgical vs. Medtronic: Which Stock Is the Better Buy?

Core Insights - Intuitive Surgical has maintained a dominant position in the robotic-assisted surgery (RAS) market for nearly 20 years, but is now facing increased competition, particularly from Medtronic's Hugo system [1][2] Company Overview - Intuitive Surgical launched its da Vinci system in 2000 and has received regulatory approval for multiple iterations, with the fifth generation approved last year [3] - The installed base of the da Vinci system reached 10,763 units as of Q3, reflecting a 13% year-over-year increase [3] Financial Performance - In Q3, Intuitive Surgical reported sales of $2.51 billion, a 23% increase compared to the same period last year [4] - The company's non-GAAP earnings per share (EPS) were $2.40, up from $1.84 in the previous year [4] Market Potential - The RAS market remains underpenetrated, presenting significant growth opportunities as robotic systems facilitate minimally invasive surgeries with better outcomes than traditional methods [5] - Intuitive Surgical benefits from a strong economic moat due to high switching costs associated with its da Vinci system, which includes a steep learning curve and high price [5] Strategic Challenges - Despite facing challenges such as tariffs, Intuitive Surgical is expected to navigate these issues, potentially through negotiations or by passing costs onto clients [6] - The company's stock performance has lagged behind the S&P 500 this year, but its long-term outlook remains positive [6] Competitive Landscape - Intuitive Surgical is the market leader in robotic surgery systems with ample growth prospects, while Medtronic offers a diversified business model and a strong dividend history [7]