Zimmer Biomet vs Stryker Which Outperforms?

Zimmer Biomet and Stryker are two of the largest companies in the medical technology industry, specializing in orthopedic devices such as joint replacements and surgical equipment. Both companies have been longtime competitors in the market, with their stocks being closely followed by investors. Zimmer Biomet has a strong global presence and a diverse product portfolio, while Stryker is known for its innovative technologies and consistent growth. Understanding the financial performance and market dynamics of these two companies is crucial for investors looking to capitalize on opportunities in the healthcare sector.

Zimmer Biomet or Stryker?

When comparing Zimmer Biomet and Stryker, 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 Zimmer Biomet and Stryker.

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. Zimmer Biomet has a dividend yield of 0.67%, while Stryker has a dividend yield of 0.85%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Zimmer Biomet reports a 5-year dividend growth of -12.94% year and a payout ratio of 18.29%. On the other hand, Stryker reports a 5-year dividend growth of 9.58% year and a payout ratio of 33.40%.

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 Zimmer Biomet P/E ratio at 19.93 and Stryker's P/E ratio at 39.77. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Zimmer Biomet P/B ratio is 1.74 while Stryker's P/B ratio is 7.09.

Growth Investors:

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

Retail Investors:

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