Globus Medical (NYSE: GMED) and Sunshine Heart (NASDAQ:SSH) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, earnings, profitability and valuation.
Insider & Institutional Ownership
69.4% of Globus Medical shares are held by institutional investors. 28.2% of Globus Medical shares are held by company insiders. Comparatively, 3.0% of Sunshine Heart shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Risk & Volatility
Globus Medical has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Sunshine Heart has a beta of 2.59, indicating that its stock price is 159% more volatile than the S&P 500.
This table compares Globus Medical and Sunshine Heart’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and price targets for Globus Medical and Sunshine Heart, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Globus Medical currently has a consensus target price of $29.50, suggesting a potential downside of 2.03%. Sunshine Heart has a consensus target price of $0.23, suggesting a potential downside of 62.47%. Given Globus Medical’s higher possible upside, research analysts clearly believe Globus Medical is more favorable than Sunshine Heart.
Earnings & Valuation
This table compares Globus Medical and Sunshine Heart’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Globus Medical||$595.44 million||3.65||$207.13 million||$1.11||27.13|
Globus Medical has higher revenue and earnings than Sunshine Heart. Sunshine Heart is trading at a lower price-to-earnings ratio than Globus Medical, indicating that it is currently the more affordable of the two stocks.
Globus Medical beats Sunshine Heart on 9 of the 10 factors compared between the two stocks.
About Globus Medical
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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