Critical Contrast: Halyard Health (HYH) & Zimmer Biomet (ZBH)
Halyard Health (NYSE: HYH) and Zimmer Biomet (NYSE:ZBH) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.
This table compares Halyard Health and Zimmer Biomet’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
90.5% of Halyard Health shares are owned by institutional investors. Comparatively, 87.4% of Zimmer Biomet shares are owned by institutional investors. 1.4% of Halyard Health shares are owned by insiders. Comparatively, 0.7% of Zimmer Biomet shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a summary of recent ratings for Halyard Health and Zimmer Biomet, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Halyard Health currently has a consensus price target of $55.50, indicating a potential downside of 7.47%. Zimmer Biomet has a consensus price target of $137.71, indicating a potential upside of 21.46%. Given Zimmer Biomet’s stronger consensus rating and higher possible upside, analysts plainly believe Zimmer Biomet is more favorable than Halyard Health.
Zimmer Biomet pays an annual dividend of $0.96 per share and has a dividend yield of 0.8%. Halyard Health does not pay a dividend. Zimmer Biomet pays out 12.0% of its earnings in the form of a dividend. Zimmer Biomet has increased its dividend for 2 consecutive years.
Valuation & Earnings
This table compares Halyard Health and Zimmer Biomet’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Halyard Health||$611.60 million||4.61||$79.30 million||$2.35||25.52|
|Zimmer Biomet||$7.82 billion||2.95||$1.81 billion||$8.03||14.12|
Zimmer Biomet has higher revenue and earnings than Halyard Health. Zimmer Biomet is trading at a lower price-to-earnings ratio than Halyard Health, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Halyard Health has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500. Comparatively, Zimmer Biomet has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.
Zimmer Biomet beats Halyard Health on 12 of the 18 factors compared between the two stocks.
Halyard Health Company Profile
Halyard Health, Inc. operates as a medical technology company that focuses on eliminating pain, speeding recovery, and preventing infection for healthcare providers and patients worldwide. Its Medical Devices segment provides a portfolio of products that focuses on respiratory and digestive health, along with surgical and interventional pain management. Its products include post-operative pain management solutions, minimally invasive interventional pain therapies, closed airway suction systems, and enteral feeding tubes. This segment sells its products under the ON-Q, COOLIEF, MICROCUFF, MIC-KEY, HOMEPUMP, CORTRAK, and other brand names. The company markets its products directly to hospitals and other healthcare providers, as well as through third-party distribution channels. Halyard Health, Inc. was incorporated in 2014 and is headquartered in Alpharetta, Georgia.
Zimmer Biomet Company Profile
Zimmer Biomet Holdings, Inc., together with its subsidiaries, designs, manufactures, and markets musculoskeletal healthcare products and solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through four segments: Spine, less Asia Pacific; Office Based Technologies; Craniomaxillofacial and Thoracic; and Dental. The company provides orthopaedic reconstructive products, such as knee and hip replacement products; S.E.T. products, including surgical, sports medicine, biologics, foot and ankle, extremities, and trauma products; spine products comprising medical devices and surgical instruments; and 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 dental products that include dental reconstructive implants, and dental prosthetic and regenerative products; and bone cement and spinal fusion stimulators. 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 orthopaedic surgeons, neurosurgeons, oral surgeons, dentists, 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.
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