K2M Group Holdings (NASDAQ: KTWO) is one of 81 public companies in the “Medical Equipment, Supplies & Distribution” industry, but how does it weigh in compared to its peers? We will compare K2M Group Holdings to related businesses based on the strength of its profitability, institutional ownership, analyst recommendations, dividends, valuation, risk and earnings.

Profitability

This table compares K2M Group Holdings and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
K2M Group Holdings -16.22% -16.02% -10.73%
K2M Group Holdings Competitors -123.33% -43.00% -11.04%

Risk & Volatility

K2M Group Holdings has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, K2M Group Holdings’ peers have a beta of 1.08, suggesting that their average share price is 8% more volatile than the S&P 500.

Earnings and Valuation

This table compares K2M Group Holdings and its peers top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
K2M Group Holdings $236.63 million -$41.66 million -19.36
K2M Group Holdings Competitors $1.03 billion $127.56 million 216.28

K2M Group Holdings’ peers have higher revenue and earnings than K2M Group Holdings. K2M Group Holdings 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.

Analyst Recommendations

This is a breakdown of current ratings and price targets for K2M Group Holdings and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
K2M Group Holdings 0 0 8 1 3.11
K2M Group Holdings Competitors 202 1168 2574 84 2.63

K2M Group Holdings presently has a consensus target price of $25.13, suggesting a potential upside of 35.15%. As a group, “Medical Equipment, Supplies & Distribution” companies have a potential upside of 7.20%. Given K2M Group Holdings’ stronger consensus rating and higher possible upside, equities research analysts plainly believe K2M Group Holdings is more favorable than its peers.

Insider & Institutional Ownership

99.9% of K2M Group Holdings shares are held by institutional investors. Comparatively, 67.2% of shares of all “Medical Equipment, Supplies & Distribution” companies are held by institutional investors. 5.8% of K2M Group Holdings shares are held by company insiders. Comparatively, 11.7% of shares of all “Medical Equipment, Supplies & Distribution” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

K2M Group Holdings beats its peers on 9 of the 12 factors compared.

K2M Group Holdings Company Profile

K2M Group Holdings, Inc. is a medical device company focused on designing, developing and commercializing spine and minimally invasive technologies and techniques. The Company’s solutions are focused on achieving three-dimensional Total Body Balance. Its spine products are used by spine surgeons to treat spinal pathologies, such as deformity (primarily scoliosis), trauma and tumor. Its products consist of implants, disposables and instruments, which are marketed and sold primarily to hospitals for use by spine surgeons. As of December 31, 2016, its product portfolio consisted of 83 product lines that are used in complex spine, minimally invasive surgery (MIS) and degenerative surgeries. Its technologies include EVEREST, MESA, Rail 4D, Quicket Deformity, CASCADIA, CAPRI, SERENGETI, RAVINE and tifix. Its degenerative spine technologies are used to treat degenerative spine disorders and include products, such as cervical, thoracic and lumbar spinal fusion devices and interbody devices.

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