ZimVie (NASDAQ:ZIMV) versus Zimmer Biomet (NYSE:ZBH) Critical Survey

ZimVie (NASDAQ:ZIMV) and Zimmer Biomet (NYSE:ZBH) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.

Profitability

This table compares ZimVie and Zimmer Biomet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZimVie	-4.39%	6.37%	3.34%
Zimmer Biomet	10.51%	12.76%	7.21%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZimVie	1	4	0	0	1.80
Zimmer Biomet	2	8	9	1	2.45

ZimVie currently has a consensus price target of $17.75, suggesting a potential downside of 6.53%. Zimmer Biomet has a consensus price target of $111.94, suggesting a potential upside of 9.00%. Given Zimmer Biomet’s stronger consensus rating and higher possible upside, analysts plainly believe Zimmer Biomet is more favorable than ZimVie.

Volatility and Risk

ZimVie has a beta of 2.17, meaning that its share price is 117% more volatile than the S&P 500. Comparatively, Zimmer Biomet has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500.

Insider and Institutional Ownership

95.6% of ZimVie shares are owned by institutional investors. Comparatively, 88.9% of Zimmer Biomet shares are owned by institutional investors. 5.4% of ZimVie shares are owned by company insiders. Comparatively, 0.7% of Zimmer Biomet shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares ZimVie and Zimmer Biomet”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZimVie	$449.75 million	1.19	-$25.83 million	($0.70)	-27.13
Zimmer Biomet	$7.83 billion	2.60	$903.70 million	$4.11	24.99

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

Summary

Zimmer Biomet beats ZimVie on 12 of the 15 factors compared between the two stocks.

About ZimVie

ZimVie Inc., together with its subsidiaries, develops, manufactures, and markets a portfolio of products and solutions designed to treat various spine pathologies, and support dental tooth replacement and restoration procedures worldwide. It operates through two segments, The Dental Segment and The Spine Segment. The company offers dental implant systems, prosthetic and abutment products, surgical instrumentation, and kits; and patient-specific restorative solutions, such as abutments, bars, implant bridges, and hybrid restorations under the BellaTek brand name. It provides bone grafts, barrier membranes, and collagen wound care products; virtual treatment planning services, guided surgery solutions, CAD/CAM workflow systems, and intra-oral scanners; and Implant Concierge, a web-based treatment planning and surgery guide service. In addition, the company designs, manufactures, and distributes spinal fusion implants, instrumentation for various spinal procedures, biologics, and bone healing technologies. Further, it provides MIS solutions that deliver implant and instrumentation systems; and motion preservation solutions that offer non-fusion alternatives for cervical disc implant or growth modulation for anterior vertebral body tethering. The company sells its products to oral surgeons, dental specialists, general dentists, dental laboratories, and other dental organizations, including DSOs, as well as educational, medical, and governmental entities, hospitals, and surgery centers through direct sales representatives, agents, and distributors. ZimVie Inc. was incorporated in 2021 and is headquartered in Westminster, Colorado.

About Zimmer Biomet

Zimmer Biomet Holdings, Inc., together with its subsidiaries, operates as a medical technology company worldwide. The company designs, manufactures, and markets orthopedic reconstructive products, such as knee and hip products; S.E.T. products, including sports medicine, biologics, foot and ankle, extremities, and trauma products; craniomaxillofacial and thoracic products comprising 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 robotic, surgical, and bone cement products. 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 orthopedic surgeons, neurosurgeons, 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.