Inogen (NASDAQ:INGN) vs. Globus Medical (NYSE:GMED) Financial Analysis

Inogen (NASDAQ:INGN) and Globus Medical (NYSE:GMED) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.

Profitability

This table compares Inogen and Globus Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Inogen	-7.08%	-12.90%	-8.27%
Globus Medical	18.92%	13.46%	11.65%

Institutional and Insider Ownership

89.9% of Inogen shares are owned by institutional investors. Comparatively, 95.2% of Globus Medical shares are owned by institutional investors. 2.5% of Inogen shares are owned by company insiders. Comparatively, 18.4% of Globus Medical shares are owned by company 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 breakdown of current ratings for Inogen and Globus Medical, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inogen	1	0	1	1	2.67
Globus Medical	0	4	9	2	2.87

Inogen currently has a consensus target price of $14.00, indicating a potential upside of 116.02%. Globus Medical has a consensus target price of $106.36, indicating a potential upside of 29.72%. Given Inogen’s higher probable upside, analysts plainly believe Inogen is more favorable than Globus Medical.

Volatility and Risk

Inogen has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500. Comparatively, Globus Medical has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Earnings & Valuation

This table compares Inogen and Globus Medical”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inogen	$348.67 million	0.50	-$22.75 million	($0.91)	-7.12
Globus Medical	$2.94 billion	3.79	$537.87 million	$4.30	19.07

Globus Medical has higher revenue and earnings than Inogen. Inogen is trading at a lower price-to-earnings ratio than Globus Medical, indicating that it is currently the more affordable of the two stocks.

Summary

Globus Medical beats Inogen on 13 of the 15 factors compared between the two stocks.

About Inogen

Inogen, Inc., a medical technology company, develops, manufactures, and markets portable oxygen concentrators to patients, physicians and other clinicians, and third-party payors in the United States and internationally. Its oxygen concentrators are used to deliver supplemental long-term oxygen therapy to patients suffering from chronic respiratory conditions. The company offers Inogen One, a portable device that concentrate the air around the patient to provide a source of supplemental oxygen; Inogen At Home stationary oxygen concentrators; Simeox airway clearance; batteries; and related accessories. It also rents its products directly to patients. Inogen, Inc. was incorporated in 2001 and is headquartered in Goleta, California.

About Globus Medical

Globus Medical, Inc., a medical device company, develops and commercializes healthcare solutions for patients with musculoskeletal disorders in the United States and internationally. The company offers spine products, such as traditional fusion implants comprising pedicle screw and rod systems, plating systems, intervertebral spacers, and corpectomy devices for treating degenerative and congenital conditions, deformity, tumors, and trauma injuries; treatment options for motion preservation technologies that consist of dynamic stabilization, total disc replacement, and interspinous distraction devices; interventional solutions to treat vertebral compression fractures; and regenerative biologic products comprising of allografts and synthetic alternatives. It also offers products for the treatment of orthopedic trauma, including fracture plates, compression screws, intramedullary nails, and external fixation systems; and hip and knee joint solutions, including modular hip stems and acetabular cups, as well as posterior stabilizing and cruciate retaining knee arthroplasty implants. In addition, the company distributes human cell, tissue, and cellular and tissue-based products. It sells its products through direct or distributor sales representatives, as well as hip and knee products through independent sales agents. Globus Medical, Inc. was incorporated in 2003 and is headquartered in Audubon, Pennsylvania.