Stryker vs Zimmer Biomet Which Performs Better?

Stryker Corporation and Zimmer Biomet Holdings are two major players in the orthopedic medical device industry, both known for their innovative products and strong market presence. Investors interested in this sector often compare the performance of these two companies, as they compete for market share and strive to meet the growing demands of an aging population. Stryker and Zimmer Biomet stocks have shown resilience and growth potential, but analyzing their financials, product pipelines, and competitive positions is crucial for making informed investment decisions in this dynamic industry.

Stryker or Zimmer Biomet?

When comparing Stryker and Zimmer Biomet, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Stryker and Zimmer Biomet.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Stryker has a dividend yield of 0.85%, while Zimmer Biomet has a dividend yield of 0.67%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Stryker reports a 5-year dividend growth of 9.58% year and a payout ratio of 33.40%. On the other hand, Zimmer Biomet reports a 5-year dividend growth of -12.94% year and a payout ratio of 18.29%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Stryker P/E ratio at 39.77 and Zimmer Biomet's P/E ratio at 19.93. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Stryker P/B ratio is 7.09 while Zimmer Biomet's P/B ratio is 1.74.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Stryker has seen a 5-year revenue growth of 0.49%, while Zimmer Biomet's is -0.09%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Stryker's ROE at 18.49% and Zimmer Biomet's ROE at 8.64%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $373.15 for Stryker and $105.34 for Zimmer Biomet. Over the past year, Stryker's prices ranged from $285.79 to $398.20, with a yearly change of 39.33%. Zimmer Biomet's prices fluctuated between $101.47 and $133.90, with a yearly change of 31.96%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.