ZBH vs. STE, ALGN, SNN, EW, WST, PHG, CAH, ICLR, BNTX, and ARGX
Should you be buying Zimmer Biomet stock or one of its competitors? The main competitors of Zimmer Biomet include STERIS (STE), Align Technology (ALGN), Smith & Nephew (SNN), Edwards Lifesciences (EW), West Pharmaceutical Services (WST), Koninklijke Philips (PHG), Cardinal Health (CAH), ICON Public (ICLR), BioNTech (BNTX), and argenx (ARGX). These companies are all part of the "medical" sector.
STERIS (NYSE:STE) and Zimmer Biomet (NYSE:ZBH) are both large-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, community ranking, dividends, earnings, institutional ownership, analyst recommendations, valuation and media sentiment.
Zimmer Biomet has higher revenue and earnings than STERIS. Zimmer Biomet is trading at a lower price-to-earnings ratio than STERIS, indicating that it is currently the more affordable of the two stocks.
Zimmer Biomet has a net margin of 12.93% compared to Zimmer Biomet's net margin of 6.95%. Zimmer Biomet's return on equity of 13.73% beat STERIS's return on equity.
STERIS pays an annual dividend of $2.08 per share and has a dividend yield of 0.9%. Zimmer Biomet pays an annual dividend of $0.96 per share and has a dividend yield of 0.8%. STERIS pays out 54.5% of its earnings in the form of a dividend. Zimmer Biomet pays out 20.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. STERIS has increased its dividend for 19 consecutive years. STERIS is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
94.7% of STERIS shares are held by institutional investors. Comparatively, 88.9% of Zimmer Biomet shares are held by institutional investors. 1.0% of STERIS shares are held by company insiders. Comparatively, 0.7% of Zimmer Biomet shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Zimmer Biomet received 567 more outperform votes than STERIS when rated by MarketBeat users. Likewise, 68.25% of users gave Zimmer Biomet an outperform vote while only 58.51% of users gave STERIS an outperform vote.
In the previous week, Zimmer Biomet had 17 more articles in the media than STERIS. MarketBeat recorded 23 mentions for Zimmer Biomet and 6 mentions for STERIS. Zimmer Biomet's average media sentiment score of 1.00 beat STERIS's score of 0.77 indicating that STERIS is being referred to more favorably in the media.
STERIS has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, Zimmer Biomet has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.
STERIS presently has a consensus price target of $241.60, suggesting a potential upside of 5.98%. Zimmer Biomet has a consensus price target of $134.40, suggesting a potential upside of 14.89%. Given STERIS's higher possible upside, analysts clearly believe Zimmer Biomet is more favorable than STERIS.
Summary
Zimmer Biomet beats STERIS on 11 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding ZBH and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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