Contrasting Oramed Pharmaceuticals (NASDAQ:ORMP) & Zimmer Biomet (NYSE:ZBH)

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

Profitability

This table compares Zimmer Biomet and Oramed Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zimmer Biomet	10.51%	12.76%	7.21%
Oramed Pharmaceuticals	N/A	-19.37%	-18.28%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Zimmer Biomet and Oramed Pharmaceuticals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zimmer Biomet	2	9	8	1	2.40
Oramed Pharmaceuticals	1	0	0	0	1.00

Zimmer Biomet presently has a consensus price target of $109.00, suggesting a potential upside of 22.34%. Given Zimmer Biomet’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Zimmer Biomet is more favorable than Oramed Pharmaceuticals.

Earnings & Valuation

This table compares Zimmer Biomet and Oramed Pharmaceuticals”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zimmer Biomet	$8.01 billion	2.20	$903.70 million	$4.04	22.05
Oramed Pharmaceuticals	$2.00 million	46.74	-$19.06 million	$1.26	1.81

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

Institutional and Insider Ownership

88.9% of Zimmer Biomet shares are owned by institutional investors. Comparatively, 12.7% of Oramed Pharmaceuticals shares are owned by institutional investors. 1.4% of Zimmer Biomet shares are owned by insiders. Comparatively, 17.8% of Oramed Pharmaceuticals shares are owned 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.

Volatility and Risk

Zimmer Biomet has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Oramed Pharmaceuticals has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500.

Summary

Zimmer Biomet beats Oramed Pharmaceuticals on 12 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 Oramed Pharmaceuticals

Oramed Pharmaceuticals Inc. engages in the research and development of pharmaceutical solutions for the treatment of diabetes and for the use of orally ingestible capsules for delivery of polypeptides. The company's product portfolio includes ORMD-0801, an oral insulin capsule, which is in phase III clinical trial for the treatment of individuals with diabetes, as well as in phase II clinical trial for the treatment of non-alcoholic steatohepatitis; and ORA-D-013-1 and ORA-D-013-2, which have completed phase II clinical trial for the treatment of type 2 diabetes. It has license agreements with Oravax Medical Inc. to commercialize oral vaccines for COVID-19 and other novel coronaviruses. Oramed Pharmaceuticals Inc. was incorporated in 2002 and is headquartered in New York.