Comparing Globus Medical (GMED) & Medtronic PLC (MDT)
Globus Medical (NYSE: GMED) and Medtronic PLC (NYSE:MDT) are both mid-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, profitability, institutional ownership, dividends, analyst recommendations and valuation.
Medtronic PLC pays an annual dividend of $1.84 per share and has a dividend yield of 2.2%. Globus Medical does not pay a dividend. Medtronic PLC pays out 63.7% of its earnings in the form of a dividend. Medtronic PLC has raised its dividend for 39 consecutive years.
Valuation & Earnings
This table compares Globus Medical and Medtronic PLC’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Globus Medical||$595.44 million||3.55||$207.13 million||$1.11||26.40|
|Medtronic PLC||$29.71 billion||3.83||$9.22 billion||$2.89||28.97|
Medtronic PLC has higher revenue and earnings than Globus Medical. Globus Medical is trading at a lower price-to-earnings ratio than Medtronic PLC, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
69.5% of Globus Medical shares are owned by institutional investors. Comparatively, 83.4% of Medtronic PLC shares are owned by institutional investors. 28.2% of Globus Medical shares are owned by insiders. Comparatively, 0.3% of Medtronic PLC shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Globus Medical and Medtronic PLC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent recommendations for Globus Medical and Medtronic PLC, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Globus Medical currently has a consensus price target of $29.50, suggesting a potential upside of 0.68%. Medtronic PLC has a consensus price target of $90.05, suggesting a potential upside of 7.58%. Given Medtronic PLC’s stronger consensus rating and higher probable upside, analysts plainly believe Medtronic PLC is more favorable than Globus Medical.
Risk & Volatility
Globus Medical has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, Medtronic PLC has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.
Medtronic PLC beats Globus Medical on 12 of the 17 factors compared between the two stocks.
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.
Medtronic PLC Company Profile
Medtronic Public Limited Company (Medtronic) is a medical technology and services company. The Company develops, manufactures and markets its medical devices and technologies to hospitals, physicians, clinicians and patients in approximately 160 countries. The Company operates in four segments: Cardiac and Vascular Group, Minimally Invasive Technologies Group, Restorative Therapies Group and Diabetes Group. The Cardiac and Vascular Group segment includes Cardiac Rhythm & Heart Failure, Coronary & Structural Heart and Aortic & Peripheral Vascula. Its Minimally Invasive Technologies Group segment includes Surgical Solutions and Patient Monitoring and Recovery. Its Restorative Therapies Group segment includes Spine, Neuromodulation, Surgical Technologies and Neurovascular. Its Diabetes Group segment includes Intensive Insulin Management, Non-Intensive Diabetes Therapies and Diabetes Services & Solutions. The Company’s subsidiaries include Medtronic, Inc. and HeartWare International, Inc.
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