Globus Medical (GMED) vs. ResMed (RMD) Financial Analysis

Share on StockTwits

Globus Medical (NYSE:GMED) and ResMed (NYSE:RMD) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.

Dividends

ResMed pays an annual dividend of $1.48 per share and has a dividend yield of 1.3%. Globus Medical does not pay a dividend. ResMed pays out 41.9% of its earnings in the form of a dividend. ResMed has increased its dividend for 3 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Globus Medical 20.81% 14.09% 12.95%
ResMed 17.65% 26.46% 14.91%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Globus Medical and ResMed, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Globus Medical 1 2 6 0 2.56
ResMed 0 2 4 0 2.67

Globus Medical presently has a consensus price target of $56.89, suggesting a potential upside of 40.64%. ResMed has a consensus price target of $111.33, suggesting a potential downside of 0.78%. Given Globus Medical’s higher possible upside, equities research analysts plainly believe Globus Medical is more favorable than ResMed.

Risk & Volatility

Globus Medical has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, ResMed has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500.

Insider & Institutional Ownership

66.6% of Globus Medical shares are owned by institutional investors. Comparatively, 68.7% of ResMed shares are owned by institutional investors. 25.0% of Globus Medical shares are owned by company insiders. Comparatively, 1.2% of ResMed shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Globus Medical $712.97 million 5.62 $156.47 million $1.67 24.22
ResMed $2.34 billion 6.88 $315.58 million $3.53 31.79

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

Summary

ResMed beats Globus Medical on 11 of the 17 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 a variety of musculoskeletal pathologies, anatomies, and surgical approaches. Its spine product portfolio includes a range of implant and surgical approach options that could be used to treat degenerative, deformity, tumor, and trauma conditions affecting the spine from the occiput to the sacrum. The company also offers imaging, navigation, and robotic assisted surgery technology solutions, as well as motion preservation technologies, such as dynamic stabilization, total disc replacement and interspinous distraction devices, and interventional pain management solutions to treat vertebral compression fractures. In addition, it provides regenerative biologic products, such as allografts and synthetic alternatives that are adjunctive treatments used in combination with stabilizing implant hardware. Further, the company offers products for the treatment of orthopedic trauma, including fracture plates, compression screws, intramedullary nails, and external fixation systems. Additionally, 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 ResMed

ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications that diagnose, treat, and manage respiratory disorders comprising sleep disordered breathing, chronic obstructive pulmonary disease, neuromuscular disease, and other chronic diseases. It offers various products and solutions for a range of respiratory disorders, including technologies to be applied in medical and consumer products, ventilation devices, diagnostic products, mask systems for use in the hospital and home, headgear and other accessories, dental devices, portable oxygen concentrators, and cloud-based software informatics solutions to manage patient outcomes, as well as provides customer and business processes. The company also provides humidifiers, carry bags, and breathing circuits; data communications and control products, such as AirView Diagnostics, EasyCare, ResLink, ResControl, ResControl II, TxControl, ResScan, and ResTraxx modules; U-Sleep, which enables automated patient coaching through a text, email, or interactive voice phone call; and myAir, a patient engagement application that provides sleep data and a daily score based on their previous night's data, as well as offers business management software and services to medical equipment and home health providers. It markets its products to sleep clinics, home healthcare dealers, patients, hospitals, physicians, and third-party payers through a network of distributors and direct sales force in approximately 120 countries. ResMed Inc. was founded in 1989 and is headquartered in San Diego, California.

Receive News & Ratings for Globus Medical Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Globus Medical and related companies with MarketBeat.com's FREE daily email newsletter.