Critical Survey: Globus Medical (NYSE:GMED) vs. AxoGen (AXGN)
Globus Medical (NYSE: GMED) and AxoGen (NASDAQ:AXGN) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitabiliy, institutional ownership and earnings.
This is a breakdown of current recommendations and price targets for Globus Medical and AxoGen, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Globus Medical currently has a consensus target price of $29.50, suggesting a potential upside of 0.20%. AxoGen has a consensus target price of $15.90, suggesting a potential upside of 4.61%. Given AxoGen’s stronger consensus rating and higher probable upside, analysts clearly believe AxoGen is more favorable than Globus Medical.
Volatility and Risk
Globus Medical has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, AxoGen has a beta of 0.26, suggesting that its share price is 74% less volatile than the S&P 500.
This table compares Globus Medical and AxoGen’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
69.5% of Globus Medical shares are owned by institutional investors. Comparatively, 64.6% of AxoGen shares are owned by institutional investors. 28.2% of Globus Medical shares are owned by insiders. Comparatively, 9.3% of AxoGen shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Globus Medical and AxoGen’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Globus Medical||$595.44 million||3.57||$206.08 million||$1.11||26.52|
|AxoGen||$50.02 million||10.10||-$8.05 million||($0.42)||-36.19|
Globus Medical has higher revenue and earnings than AxoGen. AxoGen is trading at a lower price-to-earnings ratio than Globus Medical, indicating that it is currently the more affordable of the two stocks.
Globus Medical beats AxoGen on 9 of the 13 factors compared between the two stocks.
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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