EW vs MDT: Which Is the Better Buy in 2026?
Last updated August 2026
Short answer
EW and MDT are similarly sized, but MDT trades noticeably cheaper on forward earnings (13.32x vs 25.50x): the market is paying up for EW's profile and pricing MDT more conservatively, or for faster growth. Which you prefer comes down to the drivers you believe, and whether adding either over-concentrates what you already own.
EW vs MDT: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | EW | MDT | What it tells you |
|---|---|---|---|
| Forward P/E | 25.50 | 13.32 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 51.23 | 22.89 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 0.86 | 0.58 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 57% of range | 37% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 4.81 | 2.21 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: MDT is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how EW and MDT affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. EW and MDT share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined EW and MDT exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Edwards Lifesciences (EW) do?
Edwards Lifesciences designs and sells devices that treat structural heart disease, conditions where the heart's valves are damaged or diseased. Its largest business is TAVR, a minimally invasive procedure that replaces a narrowed aortic valve with the SAPIEN valve delivered through a catheter rather than open-heart surgery; TAVR generated about $4.49 billion in 2025, roughly three-quarters of company sales. The company also sells transcatheter mitral and tricuspid therapies (TMTT) such as the PASCAL repair system, EVOQUE tricuspid valve, and SAPIEN M3 mitral system, plus traditional surgical heart valves and supporting technologies. Edwards makes money by selling these high-margin implantable devices to hospitals worldwide, supported by clinical evidence and physician training that reinforce its leadership.
What does Medtronic (MDT) do?
Medtronic is one of the largest medical device companies in the world, designing, manufacturing, and selling therapies and devices across a broad range of chronic and acute conditions. Its business spans four main areas: Cardiovascular (pacemakers, defibrillators, heart valves, and cardiac ablation), Neuroscience (spine implants, neuromodulation for pain and movement disorders, and surgical navigation), Medical Surgical (surgical stapling, energy devices, and a growing robotic-surgery platform), and Diabetes (insulin pumps and continuous glucose monitoring). The company sells primarily to hospitals, surgeons, and health systems, generating durable, recurring demand tied to procedure volumes and chronic-disease management. Medtronic's scale gives it deep relationships with providers, a large installed base of devices, and the resources to fund extensive R&D and acquisitions. Growth depends on new product cycles, pipeline approvals, and global expansion, especially in emerging markets. Founded in 1949 and headquartered in Ireland for tax purposes (operationally rooted in Minnesota), Medtronic is a large-cap, dividend-growing medical-technology company tied to long-term healthcare demand and aging demographics.
EW vs MDT: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- EW drivers: TAVR leadership and label expansion; TMTT as the growth engine.
- MDT drivers: Diversified device portfolio; Innovation pipeline and new product cycles.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Edwards faces several headwinds at once. For MDT, medtronic has at times delivered sluggish organic growth, raising concerns that its scale slows innovation relative to nimbler competitors like Boston Scientific and Edwards Lifesciences.
EW or MDT: which should you pick?
EW vs MDT: the full fundamentals
EW. Reading a high-quality medtech like Edwards means weighing durable growth and very high gross margins against a premium valuation. The market has historically paid a P/E well above the broad market for Edwards because of its structural-heart leadership and recurring procedure-driven demand. That premium cuts both ways: when growth stays strong the multiple looks justified, but any deceleration in TAVR or a TMTT stumble can compress the multiple quickly. Because Edwards pays no dividend, total return depends on revenue and earnings growth plus buybacks rather than income.
MDT. Medtronic trades at a moderate valuation relative to faster-growing medtech peers, reflecting its scale, diversification, and reliable dividend but also a track record of slower organic growth. The multiple has expanded when new product cycles reaccelerated growth and compressed during periods of execution stumbles. The yield gives it a defensive, income-oriented profile within healthcare.
Headline figures (approximate, FY2025 results (year ended December 31, 2025) and early 2026 figures): EW shows total revenue (fy2025) ~$6.07 billion, up ~11.5%, tavr sales (fy2025) ~$4.49 billion, up ~9.3%, tmtt growth (fy2025) ~+56%, to ~$551 million, adjusted eps (fy2025) ~$2.56 to $2.62 range; MDT shows revenue (ttm) ~$33 billion, operating margin ~20% (non-GAAP higher; GAAP affected by amortization), net income (ttm) ~$4.5 billion, eps (ttm) ~$3.50 GAAP; non-GAAP higher.
The bottom line: EW vs MDT
EW and MDT are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined EW and MDT exposure against your real portfolio. It is not an investment adviser.
Wondering how EW or MDT fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Edwards Lifesciences with AI
Connect the broker you already use and ask Walnut's AI how EW fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between EW and MDT?
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Edwards Lifesciences designs and sells devices that treat structural heart disease, conditions where the heart's valves are damaged or diseased. Medtronic is one of the largest medical device companies in the world, designing, manufacturing, and selling therapies and devices across a broad range of chronic and acute conditions. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is EW or MDT the better stock?
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Neither is universally better; they suit different views and risk levels. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, EW or MDT?
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On forward P/E (as of August 2026), EW trades at 25.50x and MDT at 13.32x, so MDT is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both EW and MDT?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of EW vs MDT?
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EW: Edwards faces several headwinds at once. TAVR growth has decelerated as the aortic-stenosis market matures, and competition from Medtronic's Evolut platform and Abbott's Navitor could erode share even after Boston Scientific's exit. Much of the business depends on favorable reimbursement and FDA decisions, so a delayed or narrowed label expansion (such as for asymptomatic patients) would hurt the growth story. The stock typically trades at a premium multiple, often well above the broad market, which leaves little margin for error if results disappoint. Finally, integrating acquisitions like JenaValve and Endotronix carries execution risk and may pressure near-term margins before the pipeline pays off. MDT: Medtronic has at times delivered sluggish organic growth, raising concerns that its scale slows innovation relative to nimbler competitors like Boston Scientific and Edwards Lifesciences. The Hugo robotic platform faces an entrenched Intuitive Surgical, and the diabetes business has battled competitive pressure and prior regulatory issues. Device companies face reimbursement pressure, hospital budget constraints, FDA approval and recall risk, and litigation exposure. A large international footprint brings currency headwinds. The valuation is moderate but the stock has lagged when growth disappointed. New-product execution, pipeline timing, and the ability to reaccelerate organic growth remain the key swing factors for the investment case.
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Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell EW or MDT; figures are approximate and dated (as of August 2026). Verify current data before investing.