Financial Contrast: Zynex (ZYXI) versus Medtronic (MDT)

Zynex (OTCMKTS: ZYXI) and Medtronic (NYSE:MDT) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

79.8% of Medtronic shares are owned by institutional investors. 0.3% of Medtronic shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Zynex and Medtronic’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zynex 32.26% 23,849.12% 185.67%
Medtronic 16.93% 12.63% 6.51%

Dividends

Medtronic pays an annual dividend of $1.84 per share and has a dividend yield of 2.2%. Zynex does not pay a dividend. Medtronic pays out 50.5% of its earnings in the form of a dividend. Zynex has increased its dividend for 40 consecutive years.

Analyst Ratings

This is a summary of recent recommendations for Zynex and Medtronic, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zynex 0 1 0 0 2.00
Medtronic 0 8 14 0 2.64

Medtronic has a consensus price target of $90.86, suggesting a potential upside of 9.06%. Given Medtronic’s stronger consensus rating and higher probable upside, analysts clearly believe Medtronic is more favorable than Zynex.

Risk and Volatility

Zynex has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500. Comparatively, Medtronic has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Valuation & Earnings

This table compares Zynex and Medtronic’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zynex $13.31 million 11.59 $60,000.00 $0.13 36.15
Medtronic $29.71 billion 3.80 $4.03 billion $3.64 22.89

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

Summary

Medtronic beats Zynex on 10 of the 17 factors compared between the two stocks.

Zynex Company Profile

Zynex, Inc. operates through the Electrotherapy and Pain Management Products segment. The Company conducts its business through its subsidiaries and the operating subsidiary is Zynex Medical, Inc. (ZMI). Its other subsidiaries include Zynex Monitoring Solutions, Inc. (ZMS) and Zynex Europe, ApS (ZEU). ZMI designs, manufactures and markets medical devices that treat chronic and acute pain, as well as activate and exercise muscles for rehabilitative purposes with electrical stimulation. ZMS is in the process of developing its blood volume monitoring product for non-invasive cardiac monitoring. ZEU intends to focus on sales and marketing its products within the international marketplace, upon receipt of necessary regulatory approvals. It markets and sells Zynex-manufactured products and distributes private labeled products. Its products include NexWave, NeuroMove, InWave, Electrodes and Batteries. ZMI devices are intended for pain management to reduce reliance on drugs and medications.

Medtronic Company Profile

Medtronic Public Limited Company (Medtronic) is a medical technology and services company. The Company develops, manufactures and markets its medical devices and technologies to hospitals, physicians, clinicians and patients in approximately 160 countries. The Company operates in four segments: Cardiac and Vascular Group, Minimally Invasive Technologies Group, Restorative Therapies Group and Diabetes Group. The Cardiac and Vascular Group segment includes Cardiac Rhythm & Heart Failure, Coronary & Structural Heart and Aortic & Peripheral Vascula. Its Minimally Invasive Technologies Group segment includes Surgical Solutions and Patient Monitoring and Recovery. Its Restorative Therapies Group segment includes Spine, Neuromodulation, Surgical Technologies and Neurovascular. Its Diabetes Group segment includes Intensive Insulin Management, Non-Intensive Diabetes Therapies and Diabetes Services & Solutions. The Company’s subsidiaries include Medtronic, Inc. and HeartWare International, Inc.

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