Globus Medical (NYSE: GMED) is one of 78 public companies in the “Medical Equipment, Supplies & Distribution” industry, but how does it compare to its peers? We will compare Globus Medical to similar businesses based on the strength of its institutional ownership, analyst recommendations, risk, valuation, dividends, profitability and earnings.

Institutional and Insider Ownership

72.2% of Globus Medical shares are owned by institutional investors. Comparatively, 65.7% 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, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Globus Medical 1 4 7 0 2.50
Globus Medical Competitors 217 1199 2608 86 2.62

Globus Medical presently has a consensus target price of $36.83, indicating a potential downside of 5.53%. As a group, “Medical Equipment, Supplies & Distribution” companies have a potential upside of 6.44%. Given Globus Medical’s peers stronger consensus rating and higher possible upside, analysts plainly believe Globus Medical has less favorable growth aspects than its peers.

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 -441.27% -45.22% -13.23%

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Globus Medical $563.99 million $104.34 million 35.45
Globus Medical Competitors $975.11 million $120.37 million 191.14

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.

Risk & Volatility

Globus Medical has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, Globus Medical’s peers have a beta of 0.95, suggesting that their average stock price is 5% 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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