Medtronic (NYSE: MDT) and Zynex (OTCMKTS:ZYXI) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.
Earnings and Valuation
This table compares Medtronic and Zynex’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Medtronic||$29.71 billion||3.75||$4.03 billion||$2.04||40.34|
|Zynex||$23.43 million||5.54||$7.36 million||$0.23||17.39|
Medtronic has higher revenue and earnings than Zynex. Zynex is trading at a lower price-to-earnings ratio than Medtronic, indicating that it is currently the more affordable of the two stocks.
This table compares Medtronic and Zynex’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Medtronic has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Zynex has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.
This is a summary of recent ratings and target prices for Medtronic and Zynex, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Medtronic currently has a consensus price target of $91.31, indicating a potential upside of 10.94%. Given Medtronic’s stronger consensus rating and higher possible upside, research analysts clearly believe Medtronic is more favorable than Zynex.
Institutional & Insider Ownership
80.8% of Medtronic shares are owned by institutional investors. Comparatively, 0.0% of Zynex shares are owned by institutional investors. 0.3% of Medtronic 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.
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 90.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Medtronic has raised its dividend for 40 consecutive years.
Medtronic beats Zynex on 12 of the 17 factors compared between the two stocks.
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.
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.
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