Zimmer Biomet (NYSE: ZBH) and Wright Medical Group (NASDAQ:WMGI) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.
Risk & Volatility
Zimmer Biomet has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, Wright Medical Group has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.
Zimmer Biomet pays an annual dividend of $0.96 per share and has a dividend yield of 0.8%. Wright Medical Group does not pay a dividend. Zimmer Biomet pays out 12.0% of its earnings in the form of a dividend. Zimmer Biomet has raised its dividend for 2 consecutive years.
This is a summary of current recommendations for Zimmer Biomet and Wright Medical Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Wright Medical Group||0||3||9||0||2.75|
Zimmer Biomet presently has a consensus target price of $135.43, suggesting a potential upside of 10.49%. Wright Medical Group has a consensus target price of $30.30, suggesting a potential upside of 7.94%. Given Zimmer Biomet’s higher possible upside, analysts plainly believe Zimmer Biomet is more favorable than Wright Medical Group.
Earnings & Valuation
This table compares Zimmer Biomet and Wright Medical Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Zimmer Biomet||$7.82 billion||3.19||$1.81 billion||$8.03||15.26|
|Wright Medical Group||$744.99 million||3.99||-$202.59 million||($0.22)||-127.59|
Zimmer Biomet has higher revenue and earnings than Wright Medical Group. Wright Medical Group is trading at a lower price-to-earnings ratio than Zimmer Biomet, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
87.0% of Zimmer Biomet shares are owned by institutional investors. 0.7% of Zimmer Biomet shares are owned by company insiders. Comparatively, 4.0% of Wright Medical Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares Zimmer Biomet and Wright Medical Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Wright Medical Group||-24.74%||-1.94%||-0.52%|
Zimmer Biomet beats Wright Medical Group on 14 of the 18 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 Wright Medical Group
Wright Medical Group N.V., a medical device company, designs, manufactures, markets, and sells extremities and biologics products. The company offers joint implants and bone fixation devices for the shoulder, elbow, wrist, hand, foot, and ankle; and biologics products that are used for supporting the treatment of damaged or diseased bones, tendons, and soft tissues, as well as to stimulate bone growth. It also provides sports medicines and other products to mechanically repair tissue-to-tissue or tissue-to-bone injuries, as well as other ancillary products. The company primarily offers its products to orthopaedic, trauma, and podiatric surgeons. It markets and sells its products through direct sales representatives and independent sales agencies in the United States, as well as direct sales offices and distributors in approximately 50 countries. The company was founded in 1999 and is headquartered in Amsterdam, the Netherlands.
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