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

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%

Risk and Volatility

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

Institutional and Insider Ownership

69.4% 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, hedge funds and large money managers believe a company will outperform the market over the long term.

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 5.48 $205.33 million $1.09 30.39
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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Globus Medical and Sunshine Heart, as reported by MarketBeat.

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 presently has a consensus target price of $28.00, suggesting a potential downside of 15.46%. Sunshine Heart has a consensus target price of $0.23, suggesting a potential downside of 62.47%. Given Globus Medical’s higher probable upside, research 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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