Contrasting Senestech (NASDAQ:SNES) & Zimmer Biomet (NYSE:ZBH)

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

Institutional & Insider Ownership

88.9% of Zimmer Biomet shares are owned by institutional investors. Comparatively, 5.2% of Senestech shares are owned by institutional investors. 1.4% of Zimmer Biomet shares are owned by insiders. Comparatively, 5.3% of Senestech shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Zimmer Biomet	10.51%	12.76%	7.21%
Senestech	-253.54%	-98.35%	-73.17%

Valuation and Earnings

This table compares Zimmer Biomet and Senestech”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zimmer Biomet	$8.01 billion	2.20	$903.70 million	$4.04	22.05
Senestech	$1.86 million	7.75	-$6.18 million	($3.65)	-0.76

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

Volatility & Risk

Zimmer Biomet has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, Senestech has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Zimmer Biomet and Senestech, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zimmer Biomet	2	9	8	1	2.40
Senestech	1	1	0	1	2.33

Zimmer Biomet presently has a consensus price target of $109.00, indicating a potential upside of 22.34%. Senestech has a consensus price target of $10.00, indicating a potential upside of 262.32%. Given Senestech’s higher possible upside, analysts plainly believe Senestech is more favorable than Zimmer Biomet.

Summary

Zimmer Biomet beats Senestech on 11 of the 14 factors compared between the two stocks.

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.

About Senestech

SenesTech, Inc. develops a technology for managing animal pest populations through fertility control. It offers ContraPest, a liquid bait that limits reproduction of male and female rats. The company was incorporated in 2004 and is headquartered in Phoenix, Arizona.