Globus Medical (NYSE: GMED) is one of 81 public companies in the “Medical Equipment, Supplies & Distribution” industry, but how does it compare to its competitors? We will compare Globus Medical to similar businesses based on the strength of its dividends, valuation, profitability, institutional ownership, earnings, analyst recommendations and risk.

Institutional and 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 company insiders. Comparatively, 12.0% of shares of all “Medical Equipment, Supplies & Distribution” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Globus Medical and its competitors gross revenue, earnings per share 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 competitors have higher revenue and earnings than Globus Medical. Globus Medical is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Globus Medical and its competitors’ 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%

Risk and Volatility

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

Analyst Recommendations

This is a breakdown of current ratings for Globus Medical and its competitors, as provided by MarketBeat.com.

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 currently 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 competitors stronger consensus rating and higher probable upside, analysts clearly believe Globus Medical has less favorable growth aspects than its competitors.

Summary

Globus Medical competitors 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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