Critical Survey: Enovis (NYSE:ENOV) and Zepp Health (NYSE:ZEPP)

Enovis (NYSE:ENOV) and Zepp Health (NYSE:ZEPP) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, institutional ownership and profitability.

Analyst Ratings

This is a summary of recent ratings for Enovis and Zepp Health, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enovis	0	0	6	0	3.00
Zepp Health	0	0	1	0	3.00

Enovis presently has a consensus target price of $51.00, indicating a potential upside of 76.62%. Zepp Health has a consensus target price of $13.87, indicating a potential downside of 60.31%. Given Enovis’ higher probable upside, analysts clearly believe Enovis is more favorable than Zepp Health.

Valuation and Earnings

This table compares Enovis and Zepp Health”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enovis	$2.11 billion	0.78	-$825.49 million	($14.25)	-2.03
Zepp Health	$182.60 million	2.77	-$75.73 million	($4.83)	-7.23

Zepp Health has lower revenue, but higher earnings than Enovis. Zepp Health is trading at a lower price-to-earnings ratio than Enovis, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Enovis has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500. Comparatively, Zepp Health has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.

Profitability

This table compares Enovis and Zepp Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enovis	-37.80%	6.78%	3.73%
Zepp Health	-38.81%	-24.19%	-11.36%

Institutional & Insider Ownership

98.5% of Enovis shares are owned by institutional investors. Comparatively, 52.6% of Zepp Health shares are owned by institutional investors. 2.7% of Enovis shares are owned by insiders. Comparatively, 36.0% of Zepp Health shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Enovis beats Zepp Health on 9 of the 13 factors compared between the two stocks.

About Enovis

Enovis Corporation operates as a medical technology company focus on developing clinically differentiated solutions worldwide. It also manufactures and distributes medical devices which are used for reconstructive surgery, rehabilitation, pain management, and physical therapy. The company operates through Prevention and Recovery, and Reconstructive segments. Its Prevention and Recovery segment offers orthopedic solutions and recovery sciences including rigid and soft orthopedic bracing, hot and cold therapy, bone growth stimulators, vascular therapy systems and compression garments, therapeutic shoes and inserts, electrical stimulators management, and physical therapy products which are used by orthopedic specialists, surgeons, primary care physicians, pain management specialists, physical therapists, podiatrists, chiropractors, athletic trainers, and other healthcare professionals. The company's Reconstructive segment operates surgical implant business, which includes a suite of reconstructive joint products for the hip, knee, shoulder, elbow, foot, ankle, and finger, as well as surgical productivity tools. The company distributes its products through independent distributors and directly under the ESAB and DJO brands. Enovis Corporation was formerly known as Colfax Corporation. The company was founded in 1995 and is headquartered in Wilmington, Delaware.

About Zepp Health

Zepp Health Corporation operates as a smart wearable and health technology company worldwide. The company operates in two segments: Self-Branded Products and Others, and Xiaomi Wearable Products. It empowers users to live lives by optimizing health, fitness, and wellness journeys through its consumer brands, Amazfit, Zepp Clarity, and Zepp Aura. The company through its proprietary Zepp Digital Management Platform, which includes the Zepp OS, AI chips, biometric sensors, and data algorithms, delivers cloud-based 24/7 actionable insights and guidance to help users attain wellness goals. The company offers smart bands, watches, modules, and scales; and associated accessories, smart hearable products, sportswear, home fitness equipment, home appliances, and smart watch accessories. It also provides charts and graphs to display analysis of the activity and biometric data collected from users through its Zepp Life and Zepp mobile apps. It offers its products under the Amazfit and Zepp brand names in approximately 90 countries. The company was formerly known as Huami Corporation and changed its name to Zepp Health Corporation in February 2021. Zepp Health Corporation was founded in 2013 and is headquartered in Hefei, the People's Republic of China.