Contrasting SeaSpine (SPNE) and Globus Medical (GMED)

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

Insider and Institutional Ownership

66.9% of SeaSpine shares are owned by institutional investors. Comparatively, 66.6% of Globus Medical shares are owned by institutional investors. 12.5% of SeaSpine shares are owned by company insiders. Comparatively, 25.0% of Globus Medical shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SeaSpine $143.44 million 1.88 -$33.52 million ($2.18) -6.54
Globus Medical $712.97 million 5.63 $156.47 million $1.67 24.30

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for SeaSpine and Globus Medical, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SeaSpine 0 0 6 0 3.00
Globus Medical 1 3 6 0 2.50

SeaSpine presently has a consensus target price of $21.00, indicating a potential upside of 47.37%. Globus Medical has a consensus target price of $55.30, indicating a potential upside of 36.27%. Given SeaSpine’s stronger consensus rating and higher possible upside, research analysts plainly believe SeaSpine is more favorable than Globus Medical.

Profitability

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

Net Margins Return on Equity Return on Assets
SeaSpine -24.18% -30.07% -23.45%
Globus Medical 20.81% 14.09% 12.95%

Risk and Volatility

SeaSpine has a beta of 0.06, meaning that its stock price is 94% less volatile than the S&P 500. Comparatively, Globus Medical has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500.

Summary

Globus Medical beats SeaSpine on 10 of the 13 factors compared between the two stocks.

About SeaSpine

SeaSpine Holdings Corporation, a medical technology company, focuses on the design, development, and commercialization of surgical solutions for the treatment of spinal disorders in the United States and internationally. The company provides orthobiologics and spinal implant solutions for the neurosurgeons and orthopedic spine surgeons to perform fusion procedures in the lumbar, thoracic, and cervical spine. Its orthobiologics products include demineralized bone matrices (DBM), collagen ceramic matrices, demineralized cancellous allograft bone products, and synthetic bone void fillers to improve bone fusion rates in a range of orthopedic surgeries, including spine, hip, and extremities procedures. The company also offers orthobiologics products in various forms, such as fibers, putties, pastes, strips, and DBM. Its spinal implant portfolio comprises products for spinal decompression, alignment, and stabilization that are used to facilitate fusion in degenerative, minimally invasive, and complex spinal deformity procedures throughout the lumbar, thoracic, and cervical regions of the spine. The company was incorporated in 2015 and is headquartered in Carlsbad, California.

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.

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