Critical Review: Cardiovascular Systems (CSII) & Zimmer Biomet Holdings (ZBH)
Cardiovascular Systems (NASDAQ: CSII) and Zimmer Biomet Holdings (NYSE:ZBH) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Volatility & Risk
Cardiovascular Systems has a beta of 2.54, meaning that its share price is 154% more volatile than the S&P 500. Comparatively, Zimmer Biomet Holdings has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.
Valuation and Earnings
This table compares Cardiovascular Systems and Zimmer Biomet Holdings’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cardiovascular Systems||$204.91 million||4.71||$5.43 million||($0.06)||-487.59|
|Zimmer Biomet Holdings||$7.78 billion||3.05||$2.80 billion||$3.48||33.77|
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.
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.
This is a summary of recent ratings and recommmendations for Cardiovascular Systems and Zimmer Biomet Holdings, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Zimmer Biomet Holdings||1||6||13||1||2.67|
Cardiovascular Systems currently has a consensus price target of $34.40, indicating a potential upside of 17.57%. Zimmer Biomet Holdings has a consensus price target of $138.47, indicating a potential upside of 17.82%. Given Zimmer Biomet Holdings’ stronger consensus rating and higher probable upside, analysts clearly believe Zimmer Biomet Holdings is more favorable than Cardiovascular Systems.
This table compares Cardiovascular Systems and Zimmer Biomet Holdings’ 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%|
Insider and Institutional Ownership
74.7% of Cardiovascular Systems shares are owned by institutional investors. Comparatively, 85.4% of Zimmer Biomet Holdings shares are owned by institutional investors. 3.6% of Cardiovascular Systems shares are owned by company insiders. Comparatively, 1.1% of Zimmer Biomet Holdings shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Zimmer Biomet Holdings beats Cardiovascular Systems on 11 of the 16 factors compared between the two stocks.
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.
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.
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