Zimmer Biomet Holdings (NYSE: ZBH) and CryoLife (NYSE:CRY) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, dividends, earnings, institutional ownership and valuation.

Valuation and Earnings

This table compares Zimmer Biomet Holdings and CryoLife’s 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 2.92 $2.80 billion $3.48 32.33
CryoLife $183.16 million 3.45 $23.56 million $0.33 57.27

Zimmer Biomet Holdings has higher revenue and earnings than CryoLife. Zimmer Biomet Holdings is trading at a lower price-to-earnings ratio than CryoLife, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

82.8% of Zimmer Biomet Holdings shares are held by institutional investors. Comparatively, 69.2% of CryoLife shares are held by institutional investors. 1.1% of Zimmer Biomet Holdings shares are held by company insiders. Comparatively, 6.0% of CryoLife shares are held 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.

Profitability

This table compares Zimmer Biomet Holdings and CryoLife’s 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%
CryoLife 6.16% 7.41% 4.95%

Risk and Volatility

Zimmer Biomet Holdings has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, CryoLife has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Zimmer Biomet Holdings and CryoLife, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zimmer Biomet Holdings 1 6 13 1 2.67
CryoLife 0 0 3 0 3.00

Zimmer Biomet Holdings currently has a consensus target price of $138.84, indicating a potential upside of 23.40%. CryoLife has a consensus target price of $22.33, indicating a potential upside of 18.17%. Given Zimmer Biomet Holdings’ higher possible upside, research analysts clearly believe Zimmer Biomet Holdings is more favorable than CryoLife.

Dividends

Zimmer Biomet Holdings pays an annual dividend of $0.96 per share and has a dividend yield of 0.9%. CryoLife does not pay a dividend. Zimmer Biomet Holdings pays out 27.6% of its earnings in the form of a dividend. CryoLife has raised its dividend for 4 consecutive years.

Summary

Zimmer Biomet Holdings beats CryoLife on 12 of the 18 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.

CryoLife Company Profile

CryoLife, Inc. (CryoLife) is a medical device manufacturer and processor, and is engaged in the distribution of medical devices and implantable human tissues used in cardiac surgical procedures. The Company operates through two segments: Medical Devices and Preservation Services. The Medical Devices segment includes medical devices, such as BioGlue Surgical Adhesive, BioFoam Surgical Matrix, On-X Life Technologies Holdings, Inc. valves and surgical products, CardioGenesis cardiac laser therapy product line, PerClot and PhotoFix. PhotoFix is a pericardial patch stabilized using a dye-mediated photo-fixation process that requires no glutaraldehyde. The Preservation Services segment includes external services, such as preservation of cardiac and vascular tissues. The cardiac and vascular human tissues distributed by CryoLife include the CryoValve SG pulmonary heart valve and the CryoPatch SG pulmonary cardiac patch, both of which are processed using CryoLife’s SynerGraft technology.

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