Head to Head Contrast: Mine Safety Appliances (MSA) & Zimmer Biomet (ZBH)

Mine Safety Appliances (NYSE: MSA) and Zimmer Biomet (NYSE:ZBH) are both industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Institutional & Insider Ownership

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69.5% of Mine Safety Appliances shares are held by institutional investors. Comparatively, 86.5% of Zimmer Biomet shares are held by institutional investors. 15.5% of Mine Safety Appliances shares are held by company insiders. Comparatively, 1.1% of Zimmer Biomet 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.

Valuation and Earnings

This table compares Mine Safety Appliances and Zimmer Biomet’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mine Safety Appliances $1.20 billion 2.65 $26.02 million $3.87 21.41
Zimmer Biomet $7.82 billion 2.73 $1.81 billion $8.03 13.10

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

Analyst Recommendations

This is a summary of recent recommendations for Mine Safety Appliances and Zimmer Biomet, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mine Safety Appliances 0 1 2 0 2.67
Zimmer Biomet 0 6 16 1 2.78

Mine Safety Appliances currently has a consensus price target of $89.33, indicating a potential upside of 7.80%. Zimmer Biomet has a consensus price target of $139.35, indicating a potential upside of 32.49%. Given Zimmer Biomet’s stronger consensus rating and higher probable upside, analysts clearly believe Zimmer Biomet is more favorable than Mine Safety Appliances.

Profitability

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

Net Margins Return on Equity Return on Assets
Mine Safety Appliances 2.17% 23.91% 9.68%
Zimmer Biomet 23.51% 15.45% 6.19%

Risk and Volatility

Mine Safety Appliances has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, Zimmer Biomet has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.

Dividends

Mine Safety Appliances pays an annual dividend of $1.40 per share and has a dividend yield of 1.7%. Zimmer Biomet pays an annual dividend of $0.96 per share and has a dividend yield of 0.9%. Mine Safety Appliances pays out 36.2% of its earnings in the form of a dividend. Zimmer Biomet pays out 12.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Mine Safety Appliances has raised its dividend for 46 consecutive years and Zimmer Biomet has raised its dividend for 2 consecutive years. Mine Safety Appliances is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Zimmer Biomet beats Mine Safety Appliances on 11 of the 18 factors compared between the two stocks.

Mine Safety Appliances Company Profile

MSA Safety Incorporated develops, manufactures, and supplies safety products that protect people and facility infrastructures in the oil, gas, petrochemical, fire service, construction, utilities, and mining industries worldwide. It operates through Americas and International segments. The company's core product offerings include permanently installed fixed gas and flame detection instruments, such as permanently installed gas detection monitoring systems, and flame detectors and open-path infrared gas detectors, as well as replacement components and related services to detect the presence or absence of various gases in the air. Its core product offerings also consist of breathing apparatus products, such as self-contained breathing apparatus, face masks, and respirators; hand-held portable gas detection instruments; industrial head protection products; firefighter helmets and protective apparel; and fall protection equipment comprising confined space equipment, harnesses, fall arrest equipment, lanyards, and lifelines. In addition, the company offers respirators, eye and face protection products, ballistic helmets, and gas masks. It serves distributors, and industrial or military end-users through indirect and direct sales channels. The company was founded in 1914 and is based in Cranberry Township, Pennsylvania.

Zimmer Biomet Company Profile

Zimmer Biomet Holdings, Inc. is engaged in designing, manufacturing and marketing of orthopedic reconstructive products; sports medicine, biologics, extremities and trauma products; office-based technologies; spine, craniomaxillofacial and thoracic products; dental implants, and related surgical products. The Company’s products and solutions help treat patients suffering from disorders of, or injuries to, bones, joints or supporting soft tissues. The Company manages its operations through three geographic operating segments: the Americas, consisting principally of the United States and other North, Central and South American markets; EMEA, consisting principally of Europe and the Middle East and African markets, and Asia Pacific, consisting primarily of Japan and other Asian and Pacific markets. The Company’s product category segments include Americas Spine, Office Based Technologies, Craniomaxillofacial and Thoracic (CMF), and Dental.

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