Invivo Therapeutics (NVIV) versus Globus Medical (GMED) Critical Contrast

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

Analyst Recommendations

This is a summary of current ratings and target prices for Globus Medical and Invivo Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Globus Medical 2 2 8 0 2.50
Invivo Therapeutics 0 0 0 0 N/A

Globus Medical currently has a consensus target price of $54.40, suggesting a potential upside of 5.71%. Given Globus Medical’s higher possible upside, analysts plainly believe Globus Medical is more favorable than Invivo Therapeutics.

Earnings & Valuation

This table compares Globus Medical and Invivo Therapeutics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Globus Medical $635.98 million 7.95 $107.34 million $1.31 39.28
Invivo Therapeutics N/A N/A -$26.74 million ($18.50) -0.11

Globus Medical has higher revenue and earnings than Invivo Therapeutics. Invivo Therapeutics 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 and Volatility

Globus Medical has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, Invivo Therapeutics has a beta of 2.12, meaning that its share price is 112% more volatile than the S&P 500.

Profitability

This table compares Globus Medical and Invivo Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Globus Medical 19.91% 15.14% 13.74%
Invivo Therapeutics N/A -412.40% -181.93%

Insider & Institutional Ownership

63.9% of Globus Medical shares are held by institutional investors. Comparatively, 9.3% of Invivo Therapeutics shares are held by institutional investors. 28.4% of Globus Medical shares are held by insiders. Comparatively, 2.8% of Invivo Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Globus Medical beats Invivo Therapeutics on 11 of the 12 factors compared between the two stocks.

About Globus Medical

Globus Medical, Inc., a medical device company, focuses on the design, development, and commercialization of musculoskeletal implants that promote healing in patients with spine disorders. The company offers products that address an array of spinal pathologies, anatomies, and surgical approaches. Its fusion products include a range of implant and surgical approach options to treat degenerative, deformity, tumor, and trauma conditions along the spine from the occiput to the sacrum. The company's disruptive technology products comprise products that allow for minimally invasive surgical techniques; and new treatment alternatives, including imaging, navigational, and robotic technologies, as well as motion preservation technologies, such as dynamic stabilization, total disc replacement, and interspinous process spacer products. Its disruptive technology products also consist of regenerative biologics products, including bioactive glass-based bone void fillers and ceramic-collagen for pelvic/extremity and posterolateral spinal fusion procedures; and interventional pain management solutions, which comprise treatments for vertebral compression fractures. In addition, the company offers products for the treatment of orthopedic trauma, including compression screws, fixation plates, intramedullary nails, and external fixation systems. Further, it distributes human cell, tissue, and cellular and tissue based products. The company sells its implants and related disposables primarily to hospitals through direct sales representatives and independent distributors in the United States and internationally. Globus Medical, Inc. was founded in 2003 and is headquartered in Audubon, Pennsylvania.

About Invivo Therapeutics

InVivo Therapeutics Holdings Corp., a research and clinical-stage biomaterials and biotechnology company, engages in developing and commercializing biopolymer scaffolding devices for the treatment of spinal cord injuries. It is developing Neuro-Spinal Scaffold implant, an investigational bioresorbable polymer scaffold for implantation at the site of injury within a spinal cord. The company was founded in 2005 and is headquartered in Cambridge, Massachusetts.

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