Reviewing Arch Therapeutics (ARTH) and Globus Medical (GMED)
Arch Therapeutics (NASDAQ: ARTH) and Globus Medical (NYSE:GMED) are both healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Valuation and Earnings
This table compares Arch Therapeutics and Globus Medical’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Globus Medical||$595.44 million||3.73||$207.13 million||$1.11||27.70|
Globus Medical has higher revenue and earnings than Arch Therapeutics.
This is a summary of recent ratings and recommmendations for Arch Therapeutics and Globus Medical, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Arch Therapeutics currently has a consensus price target of $2.83, indicating a potential upside of 258.65%. Globus Medical has a consensus price target of $30.57, indicating a potential downside of 0.58%. Given Arch Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Arch Therapeutics is more favorable than Globus Medical.
This table compares Arch Therapeutics and Globus Medical’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
65.8% of Globus Medical shares are held by institutional investors. 28.2% of Globus Medical shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Globus Medical beats Arch Therapeutics on 7 of the 9 factors compared between the two stocks.
Arch Therapeutics Company Profile
Arch Therapeutics, Inc. is a development-stage company. The Company operates as a biotechnology company. The Company focuses on developing products to stop bleeding (hemostasis) and control leaking (sealant) during surgery and trauma care. The Company’s technology is based on a self-assembling peptide that creates a physical, mechanical barrier, which could be applied to seal organs or wounds that are leaking blood and other fluids. The Company’s primary product candidates, collectively known as the AC5 Devices (AC5), are designed to achieve hemostasis in surgical procedures. The Company’s product candidates rely on its self-assembling peptide technology and are designed to achieve hemostasis in skin wounds, and minimally invasive and open surgical procedures. The Company focuses on developing other product candidates based on its technology platform for use in a range of indications. As of September 30, 2016, the Company had not generated any revenues.
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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