ICU Medical (NASDAQ:ICUI – Get Free Report) and Zimmer Biomet (NYSE:ZBH – Get Free Report) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.
Valuation and Earnings
This table compares ICU Medical and Zimmer Biomet”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ICU Medical | $2.23 billion | 1.76 | $730,000.00 | $1.85 | 85.14 |
| Zimmer Biomet | $8.23 billion | 2.14 | $705.20 million | $3.85 | 23.68 |
Institutional and Insider Ownership
96.1% of ICU Medical shares are owned by institutional investors. Comparatively, 88.9% of Zimmer Biomet shares are owned by institutional investors. 2.1% of ICU Medical shares are owned by insiders. Comparatively, 1.3% of Zimmer Biomet shares are owned by 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 ICU Medical and Zimmer Biomet’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ICU Medical | 2.15% | 7.50% | 3.91% |
| Zimmer Biomet | 9.05% | 13.24% | 7.28% |
Analyst Ratings
This is a breakdown of recent recommendations and price targets for ICU Medical and Zimmer Biomet, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ICU Medical | 1 | 1 | 4 | 3 | 3.00 |
| Zimmer Biomet | 3 | 13 | 7 | 1 | 2.25 |
ICU Medical presently has a consensus price target of $168.40, suggesting a potential upside of 6.91%. Zimmer Biomet has a consensus price target of $100.70, suggesting a potential upside of 10.44%. Given Zimmer Biomet’s higher probable upside, analysts plainly believe Zimmer Biomet is more favorable than ICU Medical.
Volatility & Risk
ICU Medical has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Zimmer Biomet has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500.
Summary
Zimmer Biomet beats ICU Medical on 9 of the 15 factors compared between the two stocks.
About ICU Medical
ICU Medical, Inc., together with its subsidiaries, develops, manufactures, and sells medical devices used in infusion therapy, vascular access, and vital care applications worldwide. Its infusion therapy products include needlefree products under the MicroClave, MicroClave Clear, and NanoClave brands; Neutron catheter patency devices; ChemoClave and ChemoLock closed system transfer devices, which are used to limit the escape of hazardous drugs or vapor concentrations, block the transfer of environmental contaminants into the system, and eliminates the risk of needlestick injury; Tego needle free connectors; Deltec GRIPPER non-coring needles for portal access; and ClearGuard, SwabCap, and SwabTip disinfection caps. The company provides IV therapy and diluents, such as sodium chloride, dextrose, balanced electrolyte solutions, lactated ringer's, ringer's, mannitol, sodium chloride/dextrose, and sterile water; and irrigation solutions comprising sodium chloride and sterile water irrigation, physiologic solutions, ringer's irrigation, acetic acid irrigation, glycine irrigation, sorbitol-mannitol irrigation, flexible containers, and pour bottle options. It offers infusion pumps under the Plum 360 and Plum Duo brands; ambulatory and syringe infusion hardware products; IV mediation safety software, including ICU Medical MedNet, an enterprise-class medication management platform; LifeShield and PharmGuard medication infusion safety software; hemodynamic monitoring products; anesthesia systems and devices, breathing circuits, ventilation, respiratory, and specialty airway products; temperature management solutions; anesthesia/pain management trays and components; and professional services. The company's customers include acute care hospitals, wholesalers, ambulatory clinics, and alternate site facilities, including outpatient clinics, home health care providers, and long-term care facilities. ICU Medical, Inc. was founded in 1984 and is based in San Clemente, California.
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.
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