Contrasting Evolus (NASDAQ:EOLS) and Zimmer Biomet (NYSE:ZBH)

Evolus (NASDAQ:EOLS) and Zimmer Biomet (NYSE:ZBH) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Evolus and Zimmer Biomet, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evolus	1	1	5	0	2.57
Zimmer Biomet	3	10	9	1	2.35

Evolus currently has a consensus target price of $19.33, suggesting a potential upside of 312.22%. Zimmer Biomet has a consensus target price of $107.24, suggesting a potential upside of 23.21%. Given Evolus’ stronger consensus rating and higher probable upside, analysts plainly believe Evolus is more favorable than Zimmer Biomet.

Earnings & Valuation

This table compares Evolus and Zimmer Biomet”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evolus	$266.27 million	1.14	-$50.42 million	($0.92)	-5.10
Zimmer Biomet	$7.68 billion	2.25	$903.70 million	$4.04	21.54

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

Profitability

This table compares Evolus and Zimmer Biomet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Evolus	-20.49%	N/A	-23.47%
Zimmer Biomet	10.05%	12.85%	7.17%

Volatility and Risk

Evolus has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Zimmer Biomet has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.

Insider and Institutional Ownership

90.7% of Evolus shares are held by institutional investors. Comparatively, 88.9% of Zimmer Biomet shares are held by institutional investors. 5.9% of Evolus shares are held by insiders. Comparatively, 1.4% of Zimmer Biomet shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

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

About Evolus

Evolus, Inc., a performance beauty company, focuses on delivering products in the cash-pay aesthetic market in the United States, Canada, and Europe. The company offers Jeuveau, a proprietary 900 kilodalton purified botulinum toxin type A formulation for the temporary improvement in the appearance of moderate to severe glabellar lines in adults. It also provides dermal filler products under the Estyme and Evolysse names. The company was incorporated in 2012 and is headquartered in Newport Beach, California.

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.