Contrasting Zimmer Biomet (NYSE:ZBH) and Capricor Therapeutics (NASDAQ:CAPR)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Capricor Therapeutics	N/A	-99.57%	-76.16%
Zimmer Biomet	8.56%	12.93%	7.11%

Analyst Ratings

This is a summary of current ratings for Capricor Therapeutics and Zimmer Biomet, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capricor Therapeutics	1	0	9	0	2.80
Zimmer Biomet	3	10	8	1	2.32

Capricor Therapeutics currently has a consensus price target of $46.09, suggesting a potential upside of 51.12%. Zimmer Biomet has a consensus price target of $106.20, suggesting a potential upside of 13.89%. Given Capricor Therapeutics’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Capricor Therapeutics is more favorable than Zimmer Biomet.

Institutional and Insider Ownership

21.7% of Capricor Therapeutics shares are held by institutional investors. Comparatively, 88.9% of Zimmer Biomet shares are held by institutional investors. 10.5% of Capricor Therapeutics 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, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capricor Therapeutics	$22.27 million	75.75	-$40.47 million	($2.26)	-13.50
Zimmer Biomet	$8.23 billion	2.22	$705.20 million	$3.54	26.34

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

Risk & Volatility

Capricor Therapeutics has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500. Comparatively, Zimmer Biomet has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.

Summary

Zimmer Biomet beats Capricor Therapeutics on 10 of the 15 factors compared between the two stocks.

About Capricor Therapeutics

Capricor Therapeutics, Inc. (NASDAQ:CAPR) is a clinical-stage biotechnology company focused on the discovery, development and commercialization of first-in-class biological therapeutics for the treatment of rare disorders. Capricor’s lead candidate, CAP-1002, is an allogeneic cell therapy that is currently in clinical development for the treatment of Duchenne muscular dystrophy. Capricor has also established itself as one of the leading companies investigating the field of extracellular vesicles and is exploring the potential of CAP-2003, a cell-free, exosome-based candidate, to treat a variety of disorders.

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.