Critical Survey: Globus Medical (NYSE:GMED) vs. Echo Therapeutics (OTCMKTS:ECTE)

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Globus Medical and Echo Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Globus Medical	0	5	9	2	2.81
Echo Therapeutics	0	0	0	0	0.00

Globus Medical presently has a consensus target price of $106.36, indicating a potential upside of 36.70%. Given Globus Medical’s stronger consensus rating and higher possible upside, analysts plainly believe Globus Medical is more favorable than Echo Therapeutics.

Profitability

This table compares Globus Medical and Echo Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Globus Medical	18.92%	13.69%	11.83%
Echo Therapeutics	N/A	N/A	N/A

Institutional & Insider Ownership

95.2% of Globus Medical shares are owned by institutional investors. 18.4% of Globus Medical shares are owned by insiders. Comparatively, 7.0% of Echo Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Globus Medical and Echo Therapeutics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Globus Medical	$2.94 billion	3.58	$537.87 million	$3.94	19.75
Echo Therapeutics	N/A	N/A	N/A	N/A	N/A

Globus Medical has higher revenue and earnings than Echo Therapeutics.

Summary

Globus Medical beats Echo Therapeutics on 10 of the 10 factors compared between the two stocks.

About Globus Medical

Globus Medical, Inc., a medical device company, develops and commercializes healthcare solutions for patients with musculoskeletal disorders in the United States and internationally. The company offers spine products, such as traditional fusion implants comprising pedicle screw and rod systems, plating systems, intervertebral spacers, and corpectomy devices for treating degenerative and congenital conditions, deformity, tumors, and trauma injuries; treatment options for motion preservation technologies that consist of dynamic stabilization, total disc replacement, and interspinous distraction devices; interventional solutions to treat vertebral compression fractures; and regenerative biologic products comprising of allografts and synthetic alternatives. It also offers products for the treatment of orthopedic trauma, including fracture plates, compression screws, intramedullary nails, and external fixation systems; and hip and knee joint solutions, including modular hip stems and acetabular cups, as well as posterior stabilizing and cruciate retaining knee arthroplasty implants. In addition, the company distributes human cell, tissue, and cellular and tissue-based products. It sells its products through direct or distributor sales representatives, as well as hip and knee products through independent sales agents. Globus Medical, Inc. was incorporated in 2003 and is headquartered in Audubon, Pennsylvania.

About Echo Therapeutics

Echo Therapeutics, Inc. is a medical device company, which engages in the development of non-invasive, and wireless continuous glucose monitoring system for use in the diabetes outpatient market. It offers needle-free skin preparation device as a platform technology that allows for enhanced skin permeation enabling extraction of analytes, such as glucose and delivery of topical pharmaceuticals. The company was founded in 1989 and is headquartered in Iselin, NJ.