Zimmer Biomet (NYSE:ZBH) and Edwards Lifesciences (NYSE:EW) are both large-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.
Zimmer Biomet pays an annual dividend of $0.96 per share and has a dividend yield of 0.9%. Edwards Lifesciences does not pay a dividend. Zimmer Biomet pays out 12.0% of its earnings in the form of a dividend. Zimmer Biomet has increased its dividend for 3 consecutive years.
Zimmer Biomet has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Edwards Lifesciences has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.
This table compares Zimmer Biomet and Edwards Lifesciences’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Zimmer Biomet and Edwards Lifesciences’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Zimmer Biomet||$7.82 billion||2.72||$1.81 billion||$8.03||12.99|
|Edwards Lifesciences||$3.44 billion||9.30||$583.60 million||$3.80||40.21|
Zimmer Biomet has higher revenue and earnings than Edwards Lifesciences. Zimmer Biomet is trading at a lower price-to-earnings ratio than Edwards Lifesciences, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and price targets for Zimmer Biomet and Edwards Lifesciences, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Zimmer Biomet presently has a consensus price target of $131.05, suggesting a potential upside of 25.67%. Edwards Lifesciences has a consensus price target of $164.25, suggesting a potential upside of 7.49%. Given Zimmer Biomet’s higher possible upside, analysts clearly believe Zimmer Biomet is more favorable than Edwards Lifesciences.
Institutional & Insider Ownership
87.7% of Zimmer Biomet shares are owned by institutional investors. Comparatively, 82.3% of Edwards Lifesciences shares are owned by institutional investors. 0.7% of Zimmer Biomet shares are owned by insiders. Comparatively, 1.8% of Edwards Lifesciences shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Zimmer Biomet beats Edwards Lifesciences on 10 of the 17 factors compared between the two stocks.
About Zimmer Biomet
Zimmer Biomet Holdings, Inc., together with its subsidiaries, designs, manufactures, and markets musculoskeletal healthcare products and solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through four segments: Spine, less Asia Pacific; Office Based Technologies; Craniomaxillofacial and Thoracic; and Dental. The company provides orthopaedic reconstructive products, such as knee and hip replacement products; S.E.T. products, including surgical, sports medicine, biologics, foot and ankle, extremities, and trauma products; spine products comprising medical devices and surgical instruments; and face and skull reconstruction products, as well as products that fixate and stabilize the bones of the chest to facilitate healing or reconstruction after open heart surgery, trauma, or for deformities of the chest. It also offers dental products that include dental reconstructive implants, and dental prosthetic and regenerative products; and bone cement and spinal fusion stimulators. The company's products and solutions are used to treat patients suffering from disorders of, or injuries to, bones, joints, or supporting soft tissues. It serves orthopaedic surgeons, neurosurgeons, oral surgeons, dentists, hospitals, stocking distributors, healthcare dealers, and other specialists, as well as agents, healthcare purchasing organizations, or buying groups. The company was formerly known as Zimmer Holdings, Inc. and changed its name to Zimmer Biomet Holdings, Inc. in June 2015. Zimmer Biomet Holdings, Inc. was founded in 1927 and is headquartered in Warsaw, Indiana.
About Edwards Lifesciences
Edwards Lifesciences Corporation provides products and technologies to treat structural heart disease and critically ill patients in the United States and internationally. It offers transcatheter heart valve therapy products comprising transcatheter aortic heart valves and related delivery systems for the nonsurgical replacement of heart valves. The company also provides surgical heart valve therapy products, such as pericardial valves for aortic and mitral surgical valve replacement; aortic heart valves; annuloplasty rings and the beating-heart mitral repair systems; and cardiac cannula devices, as well as various procedure-enabling platforms to advance minimally invasive surgery. In addition, it offers critical care products, such as hemodynamic monitoring systems to measure a patient's heart function in surgical and intensive care settings; pulmonary artery catheters; Oximetry Central Venous catheters, as well as clinical monitoring platforms that display a patient's physiological status; and disposable pressure monitoring devices and closed blood sampling systems to protect patients and clinicians from infection. The company distributes its products through direct sales force and independent distributors. Edwards Lifesciences Corporation was founded in 1999 and is headquartered in Irvine, California.
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