Medtronic Poised for Growth as it Follows JNJ's Spinoff Strategy

Johnson & Johnson has outperformed Medtronic over the past decade, but some investors think Medtronic could be the better investment in the next decade.

The company's stock has generated a nearly 200% total return over the last 10 years (11.6% annualized), compared with roughly 35% for Medtronic (3.1% annualized).

JNJ's outperformance started with its 2021 decision to spin off its consumer healthcare business, Kenvue.

Medtronic is following the same strategy by spinning off its diabetes business, MiniMed.