Analyzing Medtronic (MDT) & Zynex (ZYXI)

Medtronic (NYSE: MDT) and Zynex (OTCMKTS:ZYXI) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Insider & Institutional Ownership

82.0% of Medtronic shares are held by institutional investors. 0.3% of Medtronic shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Medtronic and Zynex, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Medtronic 0 8 14 0 2.64
Zynex 0 1 0 0 2.00

Medtronic presently has a consensus price target of $90.47, suggesting a potential upside of 13.83%. Given Medtronic’s stronger consensus rating and higher probable upside, analysts plainly believe Medtronic is more favorable than Zynex.

Valuation and Earnings

This table compares Medtronic and Zynex’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Medtronic $29.71 billion 3.62 $4.03 billion $3.64 21.84
Zynex $13.31 million 11.62 $60,000.00 $0.13 36.23

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

Volatility & Risk

Medtronic has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, Zynex has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

Dividends

Medtronic pays an annual dividend of $1.84 per share and has a dividend yield of 2.3%. Zynex does not pay a dividend. Medtronic pays out 50.5% of its earnings in the form of a dividend. Medtronic has raised its dividend for 40 consecutive years.

Profitability

This table compares Medtronic and Zynex’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Medtronic 16.93% 12.63% 6.51%
Zynex 24.10% -248.78% 98.51%

Summary

Medtronic beats Zynex on 11 of the 17 factors compared between the two stocks.

Medtronic Company Profile

Medtronic Public Limited Company (Medtronic) is a medical technology and services company. The Company develops, manufactures and markets its medical devices and technologies to hospitals, physicians, clinicians and patients in approximately 160 countries. The Company operates in four segments: Cardiac and Vascular Group, Minimally Invasive Technologies Group, Restorative Therapies Group and Diabetes Group. The Cardiac and Vascular Group segment includes Cardiac Rhythm & Heart Failure, Coronary & Structural Heart and Aortic & Peripheral Vascula. Its Minimally Invasive Technologies Group segment includes Surgical Solutions and Patient Monitoring and Recovery. Its Restorative Therapies Group segment includes Spine, Neuromodulation, Surgical Technologies and Neurovascular. Its Diabetes Group segment includes Intensive Insulin Management, Non-Intensive Diabetes Therapies and Diabetes Services & Solutions. The Company’s subsidiaries include Medtronic, Inc. and HeartWare International, Inc.

Zynex Company Profile

Zynex, Inc. operates through the Electrotherapy and Pain Management Products segment. The Company conducts its business through its subsidiaries and the operating subsidiary is Zynex Medical, Inc. (ZMI). Its other subsidiaries include Zynex Monitoring Solutions, Inc. (ZMS) and Zynex Europe, ApS (ZEU). ZMI designs, manufactures and markets medical devices that treat chronic and acute pain, as well as activate and exercise muscles for rehabilitative purposes with electrical stimulation. ZMS is in the process of developing its blood volume monitoring product for non-invasive cardiac monitoring. ZEU intends to focus on sales and marketing its products within the international marketplace, upon receipt of necessary regulatory approvals. It markets and sells Zynex-manufactured products and distributes private labeled products. Its products include NexWave, NeuroMove, InWave, Electrodes and Batteries. ZMI devices are intended for pain management to reduce reliance on drugs and medications.

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