Edwards Lifesciences Corporation (EW) vs Zimmer Biomet Holdings, Inc. (ZBH)

Edwards Lifesciences Corporation and Zimmer Biomet Holdings, Inc. are both Medical Devices companies. Edwards Lifesciences Corporation is the larger, with a market value of $49.4B against $17.1B — 2.9× the size. Zimmer Biomet Holdings, Inc. trades at the lower P/E: 22.0× against 49.6×. Edwards Lifesciences Corporation grew revenue faster over the last twelve months: 14.6% against 8.62%. Edwards Lifesciences Corporation has the higher net margin (15.4% vs 9.48%) and the higher return on invested capital (12.8% vs 3.82%). Across the 22 metrics below, Edwards Lifesciences Corporation leads on 13 and Zimmer Biomet Holdings, Inc. on 9.

Valuation

Metric EW ZBH Medical Devices median
P/E 49.59 22.04 22.18
P/S 7.64 2.06 2.70
P/B 4.64 1.38 2.46
Price to free cash flow 35.44 16.88 22.53
EV/EBITDA 28.56 10.62 11.78
EV/Sales 7.08 2.89 2.38
Earnings yield 2.02% 4.54% (8.22%)
Free cash flow yield 2.82% 5.92% (7.80%)

Profitability

Metric EW ZBH Medical Devices median
Gross margin 77.84% 69.87% 56.01%
Operating margin 22.25% 14.16% (15.03%)
Net margin 15.43% 9.48% (20.40%)
Free cash flow margin 22.01% 12.18% (7.24%)
Return on equity 9.42% 6.41% (15.32%)
Return on assets 7.35% 3.53% (19.72%)
Return on invested capital 12.81% 3.82% (10.33%)

Growth

Metric EW ZBH Medical Devices median
Revenue growth (TTM) 14.55% 8.62% 8.80%
EPS growth (last fiscal year) (73.74%) (19.86%) —
Revenue growth, 5-year CAGR 6.70% 6.08% 15.23%
Net income growth, 5-year CAGR 5.45% 0.00% 0.00%

Health

Metric EW ZBH Medical Devices median
Debt to equity 0.06 0.59 0.07
Current ratio 4.52 1.69 2.50
Net debt to EBITDA (2.55) 3.16 0.49

Dividend

Metric EW ZBH Medical Devices median
Dividend yield — 0.69% 0.94%
Payout ratio 0.00 0.40 0.00

Size

Metric EW ZBH Medical Devices median
Market cap 49.41b 17.11b 172.91m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack