Head-To-Head Analysis: SNDL (NASDAQ:SNDL) and Zimmer Biomet (NYSE:ZBH)

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

Risk and Volatility

SNDL has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, Zimmer Biomet has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SNDL	$677.32 million	0.52	-$11.29 million	($0.04)	-34.00
Zimmer Biomet	$8.23 billion	2.14	$705.20 million	$3.54	25.66

Zimmer Biomet has higher revenue and earnings than SNDL. SNDL 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 Ratings

This is a summary of recent ratings for SNDL and Zimmer Biomet, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SNDL	1	0	1	0	2.00
Zimmer Biomet	4	10	7	1	2.23

SNDL currently has a consensus target price of $5.00, suggesting a potential upside of 267.65%. Zimmer Biomet has a consensus target price of $106.20, suggesting a potential upside of 16.93%. Given SNDL’s higher possible upside, analysts plainly believe SNDL is more favorable than Zimmer Biomet.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SNDL	-1.64%	-1.42%	-1.18%
Zimmer Biomet	8.56%	12.93%	7.11%

Insider and Institutional Ownership

88.9% of Zimmer Biomet shares are owned by institutional investors. 1.4% of Zimmer Biomet shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Zimmer Biomet beats SNDL on 13 of the 15 factors compared between the two stocks.

About SNDL

SNDL Inc. engages in the production, distribution, and sale of cannabis products in Canada. The company operates through Liquor Retail, Cannabis Retail, Cannabis Operations, and Investments segments. It engages in the cultivation, distribution, and sale of cannabis for the adult-use and medical markets; sells wines, beers, and spirits through wholly owned liquor stores; and private sale of recreational cannabis through wholly owned and franchised retail cannabis stores. In addition, the company produces and distributes inhalable products, such as flower, pre-rolls, and vapes. It offers its products under the Top Leaf, Sundial Cannabis, Palmetto, and Grasslands brands. The company was formerly known as Sundial Growers Inc. and changed its name to SNDL Inc. in July 2022. SNDL Inc. was incorporated in 2006 and is headquartered in Calgary, Canada.

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.