Head-To-Head Survey: Globus Medical (GMED) & Hill-Rom (HRC)

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

Profitability

This table compares Globus Medical and Hill-Rom’s 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%
Hill-Rom 8.19% 20.54% 6.69%

Risk & Volatility

Globus Medical has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Hill-Rom has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Globus Medical and Hill-Rom, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Globus Medical 2 2 8 0 2.50
Hill-Rom 0 3 6 0 2.67

Globus Medical presently has a consensus price target of $54.40, suggesting a potential upside of 5.71%. Hill-Rom has a consensus price target of $100.25, suggesting a potential upside of 13.65%. Given Hill-Rom’s stronger consensus rating and higher possible upside, analysts plainly believe Hill-Rom is more favorable than Globus Medical.

Dividends

Hill-Rom pays an annual dividend of $0.80 per share and has a dividend yield of 0.9%. Globus Medical does not pay a dividend. Hill-Rom pays out 20.7% of its earnings in the form of a dividend. Hill-Rom has raised its dividend for 7 consecutive years.

Institutional and Insider Ownership

63.9% of Globus Medical shares are held by institutional investors. Comparatively, 84.8% of Hill-Rom shares are held by institutional investors. 28.4% of Globus Medical shares are held by company insiders. Comparatively, 1.9% of Hill-Rom shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Globus Medical and Hill-Rom’s gross revenue, earnings per share (EPS) 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
Hill-Rom $2.74 billion 2.13 $133.60 million $3.86 22.85

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

Summary

Hill-Rom beats Globus Medical on 10 of the 17 factors compared between the two stocks.

Globus Medical Company Profile

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.

Hill-Rom Company Profile

Hill-Rom Holdings, Inc. operates as a medical technology company worldwide. It provides medical surgical beds, intensive care unit beds, bariatric patient beds, lifts and other devices, non-invasive therapeutic products and surfaces, and communications technologies and software solutions; and medical equipment management services, as well as sells equipment service contracts for its capital equipment. The company also offers patient monitoring and diagnostics products, such as blood pressure, physical assessment, vital signs monitoring, diagnostic cardiopulmonary, diabetic retinopathy screening, and thermometry products; and respiratory health products, including Vest, VitalCough, MetaNeb, and Monarch systems to assist patients in the mobilization of retained blockages. In addition, it provides surgical solutions products comprising surgical tables, lights, and pendants; positioning devices for use in shoulder, hip, spinal, and lithotomy surgeries; platform-neutral positioning accessories; and operating room surgical safety and accessory products, such as scalpels and blades, light handle systems, skin markers, and other disposable products. The company sells and rents its products to acute and extended care facilities through direct sales force and distributors; and directly to patients in the home, as well as sells its products to primary care facilities through distributors. Further, it offers diagnostic cardiology devices, to serve the continuum of clinical care, from acute care to primary care, and clinical research organizations. Hill-Rom Holdings, Inc. was founded in 1969 and is headquartered in Chicago, Illinois.

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