Contrasting AtriCure (NASDAQ:ATRC) & ZimVie (NASDAQ:ZIMV)

AtriCure (NASDAQ:ATRC) and ZimVie (NASDAQ:ZIMV) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, dividends and analyst recommendations.

Volatility & Risk

AtriCure has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500. Comparatively, ZimVie has a beta of 2.2, indicating that its share price is 120% more volatile than the S&P 500.

Profitability

This table compares AtriCure and ZimVie’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AtriCure	-7.27%	-4.20%	-3.19%
ZimVie	-4.39%	6.37%	3.34%

Insider and Institutional Ownership

99.1% of AtriCure shares are owned by institutional investors. Comparatively, 95.6% of ZimVie shares are owned by institutional investors. 3.5% of AtriCure shares are owned by company insiders. Comparatively, 5.4% of ZimVie shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for AtriCure and ZimVie, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AtriCure	0	0	9	0	3.00
ZimVie	0	4	0	0	2.00

AtriCure presently has a consensus price target of $50.89, indicating a potential upside of 45.11%. ZimVie has a consensus price target of $17.75, indicating a potential downside of 5.94%. Given AtriCure’s stronger consensus rating and higher possible upside, research analysts plainly believe AtriCure is more favorable than ZimVie.

Earnings & Valuation

This table compares AtriCure and ZimVie”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AtriCure	$499.95 million	3.49	-$44.70 million	($0.77)	-45.55
ZimVie	$449.75 million	1.18	-$25.83 million	($0.70)	-26.96

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

Summary

ZimVie beats AtriCure on 8 of the 14 factors compared between the two stocks.

About AtriCure

AtriCure, Inc. develops, manufactures, and sells devices for surgical ablation of cardiac tissue, exclusion of the left atrial appendage, and temporarily blocking pain by ablating peripheral nerves to medical centers in the United States, Europe, the Asia-Pacific, and internationally. The company offers Isolator Synergy Clamps, single-use disposable radio frequency products; multifunctional pens and linear ablation devices, such as the MAX Pen device that enables surgeons to evaluate cardiac arrhythmias, perform temporary cardiac pacing, sensing, and stimulation, and ablate cardiac tissue with the same device; and the Coolrail device, which enables users to make longer linear lines of ablation. It also provides cryoICE Cryoablation System that enables the user to make linear ablations of varied lengths; EPi-Sense Systems, a single-use disposable device used for the treatment of symptomatic, drug-refractory, and long-standing persistent atrial fibrillation; cryoSPHERE probe, which provides temporary pain relief by applying cryothermic energy to targeted intercoastal peripheral nerves in the ribcage; AtriClip System, an implantable device coupled to a single-use disposable applier; and LARIAT System, a suture-based solution for soft-tissue closure. In addition, the company sells Lumitip dissectors to separate tissues to provide access to key anatomical structures that are targeted for ablation; Glidepath guides for placement of clamps; Subtle Cannula's to support access for EPi-Sense catheters; and various reusable cardiac surgery instruments. It markets and sells its products through independent distributors and direct sales personnel. The company was incorporated in 2000 and is headquartered in Mason, Ohio.

About ZimVie

ZimVie Inc., together with its subsidiaries, develops, manufactures, and markets a portfolio of products and solutions designed to treat various spine pathologies, and support dental tooth replacement and restoration procedures worldwide. It operates through two segments, The Dental Segment and The Spine Segment. The company offers dental implant systems, prosthetic and abutment products, surgical instrumentation, and kits; and patient-specific restorative solutions, such as abutments, bars, implant bridges, and hybrid restorations under the BellaTek brand name. It provides bone grafts, barrier membranes, and collagen wound care products; virtual treatment planning services, guided surgery solutions, CAD/CAM workflow systems, and intra-oral scanners; and Implant Concierge, a web-based treatment planning and surgery guide service. In addition, the company designs, manufactures, and distributes spinal fusion implants, instrumentation for various spinal procedures, biologics, and bone healing technologies. Further, it provides MIS solutions that deliver implant and instrumentation systems; and motion preservation solutions that offer non-fusion alternatives for cervical disc implant or growth modulation for anterior vertebral body tethering. The company sells its products to oral surgeons, dental specialists, general dentists, dental laboratories, and other dental organizations, including DSOs, as well as educational, medical, and governmental entities, hospitals, and surgery centers through direct sales representatives, agents, and distributors. ZimVie Inc. was incorporated in 2021 and is headquartered in Westminster, Colorado.