GE HealthCare Technologies Inc. (GEHC) vs Zimmer Biomet Holdings, Inc. (ZBH)

GE HealthCare Technologies Inc. and Zimmer Biomet Holdings, Inc. are both Medical Devices companies. GE HealthCare Technologies Inc. is the larger, with a market value of $37.9B against $20.4B — 1.9× the size. GE HealthCare Technologies Inc. trades at the lower P/E: 17.5× against 26.9×. Zimmer Biomet Holdings, Inc. grew revenue faster over the last twelve months: 6.98% against 6.87%. GE HealthCare Technologies Inc. has the higher net margin (9.95% vs 8.95%) and the higher return on invested capital (8.86% vs 3.66%). Both pay a dividend; Zimmer Biomet Holdings, Inc. yields more (0.90% vs 0.17%). Across the 23 metrics below, Zimmer Biomet Holdings, Inc. leads on 13 and GE HealthCare Technologies Inc. on 10.

Valuation

Metric GEHC ZBH Medical Devices median
P/E 17.52 26.87 25.58
P/S 1.74 2.37 2.54
P/B 3.24 1.61 2.48
Price to free cash flow 19.95 18.22 28.81
EV/EBITDA 13.23 12.10 11.51
EV/Sales 2.15 3.20 2.72
Earnings yield 5.71% 3.72% (12.82%)
Free cash flow yield 5.01% 5.49% (8.18%)

Profitability

Metric GEHC ZBH Medical Devices median
Gross margin 39.95% 69.68% 57.76%
Operating margin 13.34% 13.55% (15.07%)
Net margin 9.95% 8.95% (14.45%)
Free cash flow margin 8.73% 13.02% (3.88%)
Return on equity 19.89% 6.02% (10.35%)
Return on assets 5.78% 3.26% (17.26%)
Return on invested capital 8.86% 3.66% (5.27%)

Growth

Metric GEHC ZBH Medical Devices median
Revenue growth (TTM) 6.87% 6.98% 10.41%
EPS growth (last fiscal year) 4.84% (19.86%) 28.17%
Revenue growth, 5-year CAGR 3.74% 6.08% 15.74%
Net income growth, 5-year CAGR (31.53%) 0.00% 0.00%

Health

Metric GEHC ZBH Medical Devices median
Debt to equity 1.00 0.59 0.04
Current ratio 1.30 1.46 2.74
Net debt to EBITDA 2.14 3.16 0.54

Dividend

Metric GEHC ZBH Medical Devices median
Dividend yield 0.17% 0.90% 1.02%
Payout ratio 0.03 0.24 0.37

Size

Metric GEHC ZBH Medical Devices median
Market cap 37.87b 20.38b 239.53m

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