Globus Medical (NYSE: GMED) and Sunshine Heart (NASDAQ:SSH) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitabiliy, risk, analyst recommendations and dividends.

Earnings and Valuation

This table compares Globus Medical and Sunshine Heart’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Globus Medical $580.54 million 5.36 $205.33 million $1.09 29.72
Sunshine Heart N/A N/A N/A ($33.63) -0.02

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.

Risk & Volatility

Globus Medical has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Sunshine Heart has a beta of 2.59, suggesting that its stock price is 159% more volatile than the S&P 500.

Profitability

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
Globus Medical 18.09% 14.15% 12.73%
Sunshine Heart N/A -302.32% -126.49%

Institutional & Insider Ownership

68.9% of Globus Medical shares are held by institutional investors. 28.2% of Globus Medical shares are held by insiders. Comparatively, 3.0% of Sunshine Heart shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Globus Medical and Sunshine Heart, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Globus Medical 1 6 3 0 2.20
Sunshine Heart 0 0 0 0 N/A

Globus Medical currently has a consensus target price of $28.00, suggesting a potential downside of 13.55%. Sunshine Heart has a consensus target price of $0.23, suggesting a potential downside of 62.47%. Given Globus Medical’s higher possible upside, equities analysts plainly believe Globus Medical is more favorable than Sunshine Heart.

Summary

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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