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Comparison of Globus Medical (NYSE: GMED) and Utah Medical Products (NASDAQ: UTMD)


Globus Medical (NYSE: GMEDGet a rating) and Utah Medical Products (NASDAQ:UTMDGet a rating) are two medical companies, but which is the best investment? We will compare the two companies based on their risk strength, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Volatility and risk

Globus Medical has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. In comparison, Utah Medical Products has a beta of 0.24, suggesting that its stock price is stock is 76% less volatile than the S&P 500.

Profitability

This table compares the net margins, return on equity and return on assets of Globus Medical and Utah Medical Products.

Net margins Return on equity return on assets
Globus Medical 14.77% 11.95% 10.69%
Utah Medical Products 30.34% 14.14% 13.03%

Institutional and insider ownership

67.2% of Globus Medical shares are held by institutional investors. By comparison, 71.4% of Utah Medical Products’ shares are held by institutional investors. 16.5% of Globus Medical shares are held by insiders of the company. By comparison, 6.6% of Utah Medical Products’ stock is held by company insiders. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommendations for Globus Medical and Utah Medical Products, as provided by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Globus Medical 0 1 9 0 2.90
Utah Medical Products 0 0 0 0 N / A

Globus Medical currently has a consensus target price of $83.18, suggesting a potential upside of 44.11%. Given the likely higher upside of Globus Medical, stock analysts clearly believe that Globus Medical is more favorable than Utah Medical Products.

Benefits and evaluation

This chart compares revenue, earnings per share, and valuation of Globus Medical and Utah Medical Products.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Globus Medical $958.10 million 6.13 $149.19 million $1.36 42.44
Utah Medical Products $49.05 million 6:30 p.m. $14.79 million $4.18 20.27

Globus Medical has higher revenues and profits than Utah Medical Products. Utah Medical Products trades at a lower price-to-earnings ratio than Globus Medical, indicating that it is currently the more affordable of the two stocks.

Summary

Globus Medical beats Utah Medical Products on 7 out of 13 factors compared between the two stocks.

About Globus Medical (Get a rating)

Globus Medical, Inc., a medical device company, develops and markets healthcare solutions for patients with musculoskeletal disorders in the United States and around the world. It offers spine products, such as traditional fusion implants comprising screw and pedicle rod systems, plating systems, intervertebral spacers and corpectomy devices for the treatment of degenerative conditions, deformities, tumors and trauma; treatment options for motion-preserving technologies that consist of dynamic stabilization, total disc replacement, and interspinous distraction devices; interventional pain management solutions to treat vertebral compression fractures; and regenerative biologics including allografts and synthetic alternatives. The Company also offers products for the treatment of orthopedic trauma, including fracture plates, compression screws, intramedullary nails and external fixation systems; and solutions for the hip and knee joints, including modular hip stems and acetabular cups, as well as posterior stabilization and cruciate ligament retention knee arthroplasty implants. In addition, it distributes human cells, tissues, and cell and tissue products. Globus Medical, Inc. was incorporated in 2003 and is headquartered in Audubon, Pennsylvania.

About Utah Medical Products (Get a rating)

Utah Medical Products, Inc. develops, manufactures and distributes medical devices for the healthcare industry. The Company offers fetal monitoring accessories, vacuum assisted delivery systems and other labor and delivery tools; Respiratory hoods for newborns DISPOSA-HOOD; and DELTRAN PLUS blood pressure monitoring systems. It also supplies GESCO umbilical vessel catheters; DIALY-NATE disposable peritoneal dialysis sets; PALA-NATE Silicone Mouthguards; URI-CATH urinary drainage systems; NUTRI-CATHNUTRI-LOK feeding device; MYELO-NATE Lumbar Sampling Kits; HEMO-NATE disposable filters; and catheterization procedure tray of instruments and supplies. Additionally, the Company offers the LETZ System for excision of cervical intraepithelial neoplasia and other lower genital tract lesions; FINESSE+ generators; loop, ball and needle electrodes; FILTRESSE spillways; other electrodes and specialized supplies and gynecological tools; Femcare trocars, cannulas, laparoscopic instruments and accessories; and EPITOME and OptiMicro electrosurgical devices. In addition, it provides Filshie Clip female surgical contraceptive devices; PATHFINDER PLUS endoscopic irrigation devices; suprapubic catheterization; LIBERTY Urinary Incontinence Treatment and Control Systems; ENDOCURETTE, a curette for the removal of uterine endometrial tissue; TVUS/HSG-Cath to assess abnormal or dysfunctional uterine bleeding and other abnormalities of the uterus; and the LUMIN tool for manipulating the uterus in laparoscopic procedures. Additionally, the company offers DELTRAN, a disposable pressure transducer; and pressure monitoring accessories, components and other castings. It serves neonatal intensive care units, labor and delivery wards, women’s health centers in hospitals, outpatient clinics and physicians’ offices through direct customer service and a force sales representatives, independent consultants and manufacturer representatives. The company was incorporated in 1978 and is headquartered in Midvale, Utah.



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Joan J. Dean

The author Joan J. Dean