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Should You Forget Intuitive Surgical and Buy This Magnificent Medical Device Stock Instead?
The Motley Foolยท 2025-10-16 08:25
Core Insights - Intuitive Surgical operates a focused business model centered around its da Vinci surgical robot, which is a leading medical device in the industry [2][3] - Despite robust demand for da Vinci systems, Intuitive Surgical's reliance on a single product exposes it to stock volatility, making it less appealing for conservative investors [3][4] - Medtronic presents a diversified alternative, offering exposure to surgical robots while also operating in various medical sectors, which may be more suitable for conservative investors [6][10] Company Performance - Intuitive Surgical has 10,488 da Vinci robots globally, marking a 14% year-over-year increase, with surgeries performed by these robots up 17% year-over-year [3] - Medtronic is recovering from a challenging period, with its fiscal first quarter of 2026 showing an 8.4% revenue growth and 4.8% organic sales growth [8] Investment Considerations - Medtronic offers a nearly 3% dividend yield, significantly higher than the S&P 500's 1.2% and the healthcare sector's average of 1.7%, making it attractive for dividend-seeking investors [9][10] - Intuitive Surgical does not provide a dividend, which may deter conservative investors looking for income [9] Long-term Outlook - Intuitive Surgical is recognized as a well-run business with a promising long-term outlook, but its stock may not suit all investors due to its volatility [11]