Globus Medical (NYSE:GMED – Get Free Report) and TELA Bio (NASDAQ:TELA – Get Free Report) are both healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.
Insider & Institutional Ownership
95.2% of Globus Medical shares are held by institutional investors. Comparatively, 94.3% of TELA Bio shares are held by institutional investors. 18.4% of Globus Medical shares are held by company insiders. Comparatively, 5.1% of TELA Bio shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent ratings for Globus Medical and TELA Bio, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Globus Medical | 0 | 5 | 9 | 3 | 2.88 |
| TELA Bio | 1 | 1 | 3 | 0 | 2.40 |
Valuation & Earnings
This table compares Globus Medical and TELA Bio”s 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 | $3.91 | 20.02 |
| TELA Bio | $80.28 million | 0.46 | -$38.83 million | ($0.77) | -1.07 |
Globus Medical has higher revenue and earnings than TELA Bio. TELA Bio is trading at a lower price-to-earnings ratio than Globus Medical, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Globus Medical and TELA Bio’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Globus Medical | 17.02% | 14.57% | 12.62% |
| TELA Bio | -51.53% | -1,320.81% | -59.39% |
Risk and Volatility
Globus Medical has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, TELA Bio has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.
Summary
Globus Medical beats TELA Bio on 13 of the 15 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 TELA Bio
TELA Bio, Inc., a commercial-stage medical technology company, focuses on providing soft-tissue reconstruction solutions that optimize clinical outcomes by prioritizing the preservation and restoration of the patient's anatomy. The company provides a portfolio of OviTex Reinforced Tissue Matrix (OviTex) products for hernia repair and abdominal wall reconstruction; and OviTex PRS Reinforced Tissue Matrix products to address the unmet needs in plastic and reconstructive surgery, as well as OviTex for Laparoscopic and Robotic Procedures, a sterile reinforced tissue matrix derived from ovine rumen with polypropylene fiber intended to be used in laparoscopic and robotic-assisted hernia surgical repairs. It markets its products through a single direct sales force, principally in the United States. The company was incorporated in 2012 and is headquartered in Malvern, Pennsylvania.
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