Globus Medical (GMED) vs. Tandem Diabetes Care (TNDM) Financial Survey

Globus Medical (NYSE: GMED) and Tandem Diabetes Care (NASDAQ:TNDM) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Globus Medical 18.05% 14.51% 13.13%
Tandem Diabetes Care -70.69% N/A -63.52%

Earnings and Valuation

This table compares Globus Medical and Tandem Diabetes Care’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Globus Medical $635.98 million 8.10 $107.34 million $1.31 40.34
Tandem Diabetes Care $107.60 million 6.40 -$73.03 million ($12.87) -1.07

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

Institutional & Insider Ownership

62.8% of Globus Medical shares are held by institutional investors. Comparatively, 47.1% of Tandem Diabetes Care shares are held by institutional investors. 28.4% of Globus Medical shares are held by company insiders. Comparatively, 9.3% of Tandem Diabetes Care shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Globus Medical and Tandem Diabetes Care, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Globus Medical 1 3 7 0 2.55
Tandem Diabetes Care 0 1 6 0 2.86

Globus Medical currently has a consensus price target of $50.63, suggesting a potential downside of 4.19%. Tandem Diabetes Care has a consensus price target of $9.92, suggesting a potential downside of 27.88%. Given Globus Medical’s higher probable upside, research analysts clearly believe Globus Medical is more favorable than Tandem Diabetes Care.

Volatility & Risk

Globus Medical has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500. Comparatively, Tandem Diabetes Care has a beta of -0.4, indicating that its share price is 140% less volatile than the S&P 500.

Summary

Globus Medical beats Tandem Diabetes Care on 13 of the 14 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 Tandem Diabetes Care

Tandem Diabetes Care, Inc. is a medical device company, which designs, develops and commercializes products for people with insulin dependent diabetes. The company was founded by Paul M. DiPerna on January 27, 2006 and is headquartered in San Diego, CA.

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