Globus Medical (NYSE: GMED) and NuVasive (NASDAQ:NUVA) are both mid-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, risk, dividends, analyst recommendations and institutional ownership.

Profitability

This table compares Globus Medical and NuVasive’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Globus Medical 17.54% 13.67% 12.35%
NuVasive 6.36% 13.65% 6.17%

Earnings and Valuation

This table compares Globus Medical and NuVasive’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Globus Medical $563.99 million 6.37 $104.34 million $1.10 33.86
NuVasive $962.07 million 2.99 $37.14 million $1.19 47.35

Globus Medical has higher revenue, but lower earnings than NuVasive. Globus Medical is trading at a lower price-to-earnings ratio than NuVasive, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for Globus Medical and NuVasive, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Globus Medical 1 4 6 0 2.45
NuVasive 1 2 13 0 2.75

Globus Medical currently has a consensus price target of $35.00, indicating a potential downside of 6.04%. NuVasive has a consensus price target of $71.64, indicating a potential upside of 27.14%. Given NuVasive’s stronger consensus rating and higher probable upside, analysts plainly believe NuVasive is more favorable than Globus Medical.

Volatility & Risk

Globus Medical has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500. Comparatively, NuVasive has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.

Insider & Institutional Ownership

67.8% of Globus Medical shares are owned by institutional investors. 28.2% of Globus Medical shares are owned by insiders. Comparatively, 1.2% of NuVasive shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

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.

About NuVasive

Nuvasive, Inc. is a medical device company. The Company focuses on developing minimally-disruptive surgical products and procedurally-integrated solutions for the spine surgery. Its product portfolio focuses on applications for spine fusion surgery, including biologics used to aid in the spinal fusion process. Its principal product offering includes a minimally-disruptive surgical platform called Maximum Access Surgery (MAS). The platform includes its software-driven nerve detection and avoidance systems, including NVM5, and intraoperative monitoring services and support; MaXcess, an integrated split-blade retractor system, and a range of implants and biologics. The platform combines three product categories: its MaXcess retractors, specialized implants and fixation products, and nerve monitoring systems and service offerings that collectively enable surgeons to detect and navigate around nerves, while directing customized access to the spine for implant delivery.

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