Globus Medical (NYSE: GMED) is one of 81 public companies in the “Medical Equipment, Supplies & Distribution” industry, but how does it contrast to its peers? We will compare Globus Medical to related businesses based on the strength of its earnings, analyst recommendations, dividends, profitability, institutional ownership, valuation 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 -126.48% -39.84% -10.83%

Institutional & Insider Ownership

65.6% of Globus Medical shares are owned by institutional investors. Comparatively, 64.4% of shares of all “Medical Equipment, Supplies & Distribution” companies are owned by institutional investors. 28.2% of Globus Medical shares are owned by insiders. Comparatively, 12.0% of shares of all “Medical Equipment, Supplies & Distribution” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations and price targets for Globus Medical and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Globus Medical 1 4 6 0 2.45
Globus Medical Competitors 208 1236 2705 95 2.63

Globus Medical presently has a consensus target price of $34.00, indicating a potential downside of 8.13%. As a group, “Medical Equipment, Supplies & Distribution” companies have a potential upside of 7.15%. Given Globus Medical’s peers stronger consensus rating and higher probable upside, analysts plainly believe Globus Medical has less favorable growth aspects than its peers.

Valuation & Earnings

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

Gross Revenue NetIncome Price/Earnings Ratio
Globus Medical $563.99 million $104.34 million 33.65
Globus Medical Competitors $975.11 million $120.37 million 241.05

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.

Volatility and Risk

Globus Medical has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Globus Medical’s peers have a beta of 0.87, suggesting that their average stock price is 13% less volatile than the S&P 500.

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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