Edwards Lifesciences vs Zimmer Biomet
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KIRA’s take AI analyst
I put Edwards Lifesciences and Zimmer Biomet side by side, using each one’s latest annual report. Here is what stands out:
- Zimmer Biomet is the larger business, with $8.2B of revenue in fiscal 2025 against $6.1B for Edwards Lifesciences.
- Edwards Lifesciences grew revenue faster (11.6%, against 7.2%).
- Edwards Lifesciences kept more of each dollar of sales as operating profit (20.8% operating margin, against 13.3%).
- Edwards Lifesciences turned more of its sales into free cash flow (22.0% FCF margin, against 17.9%).
- Edwards Lifesciences earned a higher return on the capital invested in it (15.7%, against 4.9%).
- Investors pay more for each dollar of Edwards Lifesciences’s earnings: a P/E of 52.0x against 23.7x for Zimmer Biomet.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Edwards Lifesciences
EW
9/11
Revenue growth5-year growthGross marginOperating marginNet marginFCF marginReturn on capitalReturn on equityNet debt / EBITDA
Zimmer Biomet
ZBH
2/11
Piotroski F-scoreShare count change
Side by side
Best in the row
| Latest fiscal year | EW FY25 | ZBH FY25 |
|---|---|---|
| Size | ||
| Market cap | $52.3B | $18.8B |
| Revenue | $6.1B | $8.2B |
| Free cash flow | $1.3B | $1.5B |
| Net income | $1.1B | $705M |
| Growth | ||
| Revenue growth | 11.6% | 7.2% |
| 5-year growth | 6.7% | 6.1% |
| Share count change | −2.3% | −2.6% |
| Profitability | ||
| Gross margin | 78.0% | 69.7% |
| Operating margin | 20.8% | 13.3% |
| Net margin | 17.7% | 8.6% |
| FCF margin | 22.0% | 17.9% |
| Return on capital | 15.7% | 4.9% |
| Return on equity | 10.6% | 5.6% |
| Balance sheet | ||
| Net debt | −$3.6B | $6.9B |
| Net debt / EBITDA | −2.6x | 3.2x |
| Dividends and buybacks | $893M | $677M |
| Valuation & quality | ||
| P/E | 52.0x | 23.7x |
| Piotroski F-score | 5 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.