Head-To-Head Survey: Zimmer Biomet (ZBH) & William Demant (WILYY)

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

Analyst Recommendations

This is a breakdown of current recommendations for Zimmer Biomet and William Demant, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zimmer Biomet 0 6 17 1 2.79
William Demant 1 1 0 0 1.50

Zimmer Biomet presently has a consensus price target of $137.71, suggesting a potential upside of 20.27%. Given Zimmer Biomet’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Zimmer Biomet is more favorable than William Demant.

Dividends

Zimmer Biomet pays an annual dividend of $0.96 per share and has a dividend yield of 0.8%. William Demant does not pay a dividend. Zimmer Biomet pays out 12.0% of its earnings in the form of a dividend. Zimmer Biomet has raised its dividend for 2 consecutive years.

Earnings and Valuation

This table compares Zimmer Biomet and William Demant’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zimmer Biomet $7.82 billion 2.97 $1.81 billion $8.03 14.26
William Demant $2.00 billion 4.95 $266.43 million N/A N/A

Zimmer Biomet has higher revenue and earnings than William Demant.

Profitability

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

Net Margins Return on Equity Return on Assets
Zimmer Biomet 21.81% 14.36% 6.02%
William Demant N/A N/A N/A

Volatility & Risk

Zimmer Biomet has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, William Demant has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500.

Institutional and Insider Ownership

86.5% of Zimmer Biomet shares are owned by institutional investors. 0.7% of Zimmer Biomet shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Zimmer Biomet beats William Demant on 14 of the 16 factors compared between the two stocks.

About Zimmer Biomet

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.

About William Demant

William Demant Holding A/S, a hearing healthcare company, develops, manufactures, and sells products and equipment designed to aid the people with hearing loss connect and communication primarily in Denmark, rest of Europe, North America, Oceania, Asia, and other countries. Its products include hearing devices and implants; diagnostic instruments; and personal communication systems, such as headsets and solutions for the professional call center and office market, as well as consumer headsets for the gaming and mobile segments. The company was founded in 1904 and is headquartered in Smørum, Denmark.

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