Contrasting Zimmer Biomet (NYSE:ZBH) and ReWalk Robotics (NASDAQ:LFWD)

Zimmer Biomet (NYSE:ZBH) and ReWalk Robotics (NASDAQ:LFWD) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, earnings, valuation, dividends and profitability.

Valuation & Earnings

This table compares Zimmer Biomet and ReWalk Robotics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zimmer Biomet	$7.60 billion	2.66	$1.02 billion	$5.26	19.28
ReWalk Robotics	$25.00 million	0.70	-$22.13 million	($2.49)	-0.80

Zimmer Biomet has higher revenue and earnings than ReWalk Robotics. ReWalk Robotics is trading at a lower price-to-earnings ratio than Zimmer Biomet, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Zimmer Biomet and ReWalk Robotics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zimmer Biomet	2	11	7	0	2.25
ReWalk Robotics	0	0	1	1	3.50

Zimmer Biomet presently has a consensus target price of $123.33, indicating a potential upside of 21.62%. ReWalk Robotics has a consensus target price of $13.00, indicating a potential upside of 556.57%. Given ReWalk Robotics’ stronger consensus rating and higher probable upside, analysts plainly believe ReWalk Robotics is more favorable than Zimmer Biomet.

Risk and Volatility

Zimmer Biomet has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, ReWalk Robotics has a beta of 2.08, meaning that its stock price is 108% more volatile than the S&P 500.

Profitability

This table compares Zimmer Biomet and ReWalk Robotics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zimmer Biomet	14.27%	12.95%	7.55%
ReWalk Robotics	-77.21%	-43.02%	-31.53%

Insider and Institutional Ownership

88.9% of Zimmer Biomet shares are held by institutional investors. Comparatively, 26.8% of ReWalk Robotics shares are held by institutional investors. 0.7% of Zimmer Biomet shares are held by company insiders. Comparatively, 2.5% of ReWalk Robotics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Zimmer Biomet beats ReWalk Robotics on 10 of the 15 factors compared between the two stocks.

About Zimmer Biomet

Zimmer Biomet Holdings, Inc., together with its subsidiaries, operates as a medical technology company worldwide. The company designs, manufactures, and markets orthopedic reconstructive products, such as knee and hip products; S.E.T. products, including sports medicine, biologics, foot and ankle, extremities, and trauma products; craniomaxillofacial and thoracic products comprising face and skull reconstruction products, as well as products that fixate and stabilize the bones of the chest to facilitate healing or reconstruction after open heart surgery, trauma, or for deformities of the chest. It also offers robotic, surgical, and bone cement products. The company's products and solutions are used to treat patients suffering from disorders of, or injuries to, bones, joints, or supporting soft tissues. It serves orthopedic surgeons, neurosurgeons, hospitals, stocking distributors, healthcare dealers, and other specialists, as well as agents, healthcare purchasing organizations, or buying groups. The company was formerly known as Zimmer Holdings, Inc. and changed its name to Zimmer Biomet Holdings, Inc. in June 2015. Zimmer Biomet Holdings, Inc. was founded in 1927 and is headquartered in Warsaw, Indiana.

About ReWalk Robotics

ReWalk Robotics Ltd., a medical device company, designs, develops, and commercializes technologies that enable mobility and wellness in rehabilitation and daily life for individuals with physical and neurological conditions in the United States, Europe, the Asia-Pacific, and internationally. It offers ReWalk personal exoskeleton and rehabilitation exoskeleton devices; ReStore, a soft exo-suit intended for use in the rehabilitation of individuals with lower limb disability due to stroke; AlterG Anti-Gravity System for use in physical and neurological rehabilitation and athletic training; MyoCycle devices; and ReBoot, a personal soft exo-suit for home and community use by individuals post-stroke. The company markets and sells its products directly to institutions and individuals, as well as through third-party distributors. The company was formerly known as Argo Medical Technologies Ltd. ReWalk Robotics Ltd. was incorporated in 2001 and is headquartered in Yokneam Illit, Israel.