Penumbra, Inc. (PEN) vs Zimmer Biomet Holdings, Inc. (ZBH)

Penumbra, Inc. and Zimmer Biomet Holdings, Inc. are both Medical Devices companies. Zimmer Biomet Holdings, Inc. is the larger, with a market value of $17.1B against $12.6B — 1.4× the size. Zimmer Biomet Holdings, Inc. trades at the lower P/E: 22.0× against 78.0×. Penumbra, Inc. grew revenue faster over the last twelve months: 17.6% against 8.62%. Penumbra, Inc. has the higher net margin (10.7% vs 9.48%) and the higher return on invested capital (13.1% vs 3.82%). Across the 21 metrics below, Penumbra, Inc. leads on 11 and Zimmer Biomet Holdings, Inc. on 10.

Valuation

Metric PEN ZBH Medical Devices median
P/E 77.97 22.04 22.18
P/S 8.34 2.06 2.70
P/B 8.20 1.38 2.46
Price to free cash flow 58.13 16.88 22.53
EV/EBITDA 58.25 10.62 11.78
EV/Sales 7.91 2.89 2.38
Earnings yield 1.28% 4.54% (8.22%)
Free cash flow yield 1.72% 5.92% (7.80%)

Profitability

Metric PEN ZBH Medical Devices median
Gross margin 67.84% 69.87% 56.01%
Operating margin 12.45% 14.16% (15.03%)
Net margin 10.67% 9.48% (20.40%)
Free cash flow margin 14.35% 12.18% (7.24%)
Return on equity 11.37% 6.41% (15.32%)
Return on assets 8.80% 3.53% (19.72%)
Return on invested capital 13.13% 3.82% (10.33%)

Growth

Metric PEN ZBH Medical Devices median
Revenue growth (TTM) 17.55% 8.62% 8.80%
EPS growth (last fiscal year) 1,155.56% (19.86%) —
Revenue growth, 5-year CAGR 20.16% 6.08% 15.23%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric PEN ZBH Medical Devices median
Debt to equity 0.01 0.59 0.07
Current ratio 5.75 1.69 2.50
Net debt to EBITDA (2.54) 3.16 0.49

Dividend

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

Size

Metric PEN ZBH Medical Devices median
Market cap 12.59b 17.11b 172.91m

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