Contrasting Senestech (NASDAQ:SNES) and Zimmer Biomet (NYSE:ZBH)

Senestech (NASDAQ:SNES) and Zimmer Biomet (NYSE:ZBH) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Senestech	-253.54%	-98.35%	-73.17%
Zimmer Biomet	10.51%	12.76%	7.21%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Senestech	$1.86 million	7.75	-$6.18 million	($3.65)	-0.76
Zimmer Biomet	$8.01 billion	2.20	$903.70 million	$4.04	22.05

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Senestech and Zimmer Biomet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Senestech	1	1	0	1	2.33
Zimmer Biomet	2	9	8	1	2.40

Senestech currently has a consensus target price of $10.00, suggesting a potential upside of 262.32%. Zimmer Biomet has a consensus target price of $109.00, suggesting a potential upside of 22.34%. Given Senestech’s higher possible upside, equities research analysts plainly believe Senestech is more favorable than Zimmer Biomet.

Risk and Volatility

Senestech has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500. Comparatively, Zimmer Biomet has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.

Institutional and Insider Ownership

5.2% of Senestech shares are held by institutional investors. Comparatively, 88.9% of Zimmer Biomet shares are held by institutional investors. 5.3% of Senestech shares are held by company insiders. Comparatively, 1.4% of Zimmer Biomet shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Zimmer Biomet beats Senestech on 11 of the 14 factors compared between the two stocks.

About Senestech

SenesTech, Inc. develops a technology for managing animal pest populations through fertility control. It offers ContraPest, a liquid bait that limits reproduction of male and female rats. The company was incorporated in 2004 and is headquartered in Phoenix, Arizona.

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.