Smith & Nephew SNATS, Inc. (SNN) vs Zimmer Biomet Holdings, Inc. (ZBH)

Smith & Nephew SNATS, 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 $11.2B — 1.5× the size. Zimmer Biomet Holdings, Inc. trades at the lower P/E: 22.0× against 32.8×. Zimmer Biomet Holdings, Inc. grew revenue faster over the last twelve months: 8.62% against 4.81%. Zimmer Biomet Holdings, Inc. has the higher net margin (9.48% vs 6.71%) and the higher return on invested capital (3.82% vs 0.00%). Both pay a dividend; Smith & Nephew SNATS, Inc. yields more (2.67% vs 0.69%). Across the 23 metrics below, Smith & Nephew SNATS, Inc. leads on 12 and Zimmer Biomet Holdings, Inc. on 11.

Valuation

Metric SNN ZBH Medical Devices median
P/E 32.80 22.04 22.18
P/S 1.15 2.06 2.70
P/B 2.33 1.38 2.46
Price to free cash flow 5.97 16.88 22.53
EV/EBITDA 5.66 10.62 11.78
EV/Sales 1.39 2.89 2.38
Earnings yield 3.05% 4.54% (8.22%)
Free cash flow yield 16.74% 5.92% (7.80%)

Profitability

Metric SNN ZBH Medical Devices median
Gross margin 70.52% 69.87% 56.01%
Operating margin 0.00% 14.16% (15.03%)
Net margin 6.71% 9.48% (20.40%)
Free cash flow margin 0.00% 12.18% (7.24%)
Return on equity 0.00% 6.41% (15.32%)
Return on assets 0.00% 3.53% (19.72%)
Return on invested capital 0.00% 3.82% (10.33%)

Growth

Metric SNN ZBH Medical Devices median
Revenue growth (TTM) 4.81% 8.62% 8.80%
EPS growth (last fiscal year) 52.34% (19.86%) —
Revenue growth, 5-year CAGR 6.21% 6.08% 15.23%
Net income growth, 5-year CAGR 6.89% 0.00% 0.00%

Health

Metric SNN ZBH Medical Devices median
Debt to equity 0.62 0.59 0.07
Current ratio 2.14 1.69 2.50
Net debt to EBITDA 1.92 3.16 0.49

Dividend

Metric SNN ZBH Medical Devices median
Dividend yield 2.67% 0.69% 0.94%
Payout ratio 1.50 0.40 0.00

Size

Metric SNN ZBH Medical Devices median
Market cap 11.17b 17.11b 172.91m

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