Analyzing Globus Medical (GMED) & Its Rivals

Globus Medical (NYSE: GMED) is one of 80 publicly-traded companies in the “Medical Equipment, Supplies & Distribution” industry, but how does it contrast to its peers? We will compare Globus Medical to similar businesses based on the strength of its earnings, valuation, profitability, dividends, institutional ownership, analyst recommendations and risk.

Profitability

This table compares Globus Medical and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Globus Medical 17.54% 13.67% 12.35%
Globus Medical Competitors -427.71% -43.62% -12.68%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Globus Medical and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Globus Medical 1 4 7 0 2.50
Globus Medical Competitors 212 1238 2638 93 2.62

Globus Medical currently has a consensus price target of $36.83, suggesting a potential downside of 6.37%. As a group, “Medical Equipment, Supplies & Distribution” companies have a potential upside of 6.61%. Given Globus Medical’s peers stronger consensus rating and higher possible upside, analysts clearly believe Globus Medical has less favorable growth aspects than its peers.

Risk and Volatility

Globus Medical has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, Globus Medical’s peers have a beta of 0.95, indicating that their average stock price is 5% less volatile than the S&P 500.

Institutional & Insider Ownership

72.2% of Globus Medical shares are held by institutional investors. Comparatively, 65.6% of shares of all “Medical Equipment, Supplies & Distribution” companies are held by institutional investors. 28.2% of Globus Medical shares are held by insiders. Comparatively, 12.0% of shares of all “Medical Equipment, Supplies & Distribution” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Globus Medical and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Globus Medical $563.99 million $104.34 million 35.76
Globus Medical Competitors $975.11 million $120.37 million 224.70

Globus Medical’s peers have higher revenue and earnings than Globus Medical. Globus Medical is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Globus Medical peers beat Globus Medical on 8 of the 13 factors compared.

Globus Medical Company Profile

Globus Medical, Inc. (Globus) is a medical device company focused on the design, development and commercialization of musculoskeletal implants that promote healing in patients with spine disorders. The Company is focused on implants that promote healing in patients with spine disorders. The Company’s products fall into one of two categories: Innovative Fusion or Disruptive Technologies. The Company sells its products through exclusive sales force in the United States, as well as within North, Central & South America, Europe, Asia, Africa and Australia. The sales force consists of direct sales representatives and distributor sales representatives employed by exclusive independent distributors.

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