Zimmer Biomet Holdings (NYSE: ZBH) and Cardiovascular Systems (NASDAQ:CSII) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.
Insider & Institutional Ownership
85.4% of Zimmer Biomet Holdings shares are held by institutional investors. Comparatively, 74.7% of Cardiovascular Systems shares are held by institutional investors. 1.1% of Zimmer Biomet Holdings shares are held by company insiders. Comparatively, 3.3% of Cardiovascular Systems shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Zimmer Biomet Holdings and Cardiovascular Systems’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Zimmer Biomet Holdings||$7.78 billion||3.05||$2.80 billion||$3.48||33.77|
|Cardiovascular Systems||$204.91 million||4.56||$5.43 million||($0.06)||-472.42|
Zimmer Biomet Holdings has higher revenue and earnings than Cardiovascular Systems. Cardiovascular Systems is trading at a lower price-to-earnings ratio than Zimmer Biomet Holdings, indicating that it is currently the more affordable of the two stocks.
This table compares Zimmer Biomet Holdings and Cardiovascular Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Zimmer Biomet Holdings||9.12%||16.70%||6.18%|
Zimmer Biomet Holdings pays an annual dividend of $0.96 per share and has a dividend yield of 0.8%. Cardiovascular Systems does not pay a dividend. Zimmer Biomet Holdings pays out 27.6% of its earnings in the form of a dividend.
Volatility & Risk
Zimmer Biomet Holdings has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, Cardiovascular Systems has a beta of 2.55, indicating that its stock price is 155% more volatile than the S&P 500.
This is a breakdown of current recommendations for Zimmer Biomet Holdings and Cardiovascular Systems, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Zimmer Biomet Holdings||1||6||13||1||2.67|
Zimmer Biomet Holdings currently has a consensus target price of $138.47, indicating a potential upside of 17.83%. Cardiovascular Systems has a consensus target price of $34.25, indicating a potential upside of 20.81%. Given Cardiovascular Systems’ higher possible upside, analysts plainly believe Cardiovascular Systems is more favorable than Zimmer Biomet Holdings.
Zimmer Biomet Holdings beats Cardiovascular Systems on 10 of the 16 factors compared between the two stocks.
Zimmer Biomet Holdings Company Profile
Zimmer Biomet Holdings, Inc. is engaged in designing, manufacturing and marketing of orthopedic reconstructive products; sports medicine, biologics, extremities and trauma products; office-based technologies; spine, craniomaxillofacial and thoracic products; dental implants, and related surgical products. The Company’s products and solutions help treat patients suffering from disorders of, or injuries to, bones, joints or supporting soft tissues. The Company manages its operations through three geographic operating segments: the Americas, consisting principally of the United States and other North, Central and South American markets; EMEA, consisting principally of Europe and the Middle East and African markets, and Asia Pacific, consisting primarily of Japan and other Asian and Pacific markets. The Company’s product category segments include Americas Spine, Office Based Technologies, Craniomaxillofacial and Thoracic (CMF), and Dental.
Cardiovascular Systems Company Profile
Cardiovascular Systems, Inc. is a medical technology company. The Company is engaged in treating patients suffering from peripheral and coronary artery diseases, including those with arterial calcium. The Company develops an orbital atherectomy technology for both peripheral and coronary commercial applications. Its peripheral artery disease (PAD) systems are catheter-based platforms capable of treating a range of plaque types in leg arteries both above and below the knee. Its products include Diamondback 360 Peripheral Orbital Atherectomy System (OAS) (Diamondback 360 Peripheral), the Stealth 360 OAS (Stealth 360), Diamondback 360 Peripheral, Diamondback 360 60cm Peripheral, Diamondback 360 Low Profile Peripheral, Diamondback 360 1.50 Peripheral and Diamondback 360 2.00 Peripheral. The Company’s coronary arterial disease (CAD) product, Diamondback 360 Coronary OAS (Coronary OAS), is marketed as a treatment for severely calcified coronary arteries.
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