Analyzing Globus Medical (GMED) and Cantel Medical (CMD)
Globus Medical (NYSE:GMED) and Cantel Medical (NYSE:CMD) are both mid-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, dividends and profitability.
Volatility and Risk
Globus Medical has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, Cantel Medical has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.
Cantel Medical pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. Globus Medical does not pay a dividend. Cantel Medical pays out 8.0% of its earnings in the form of a dividend.
This table compares Globus Medical and Cantel Medical’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Globus Medical and Cantel Medical’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||6.59||$156.47 million||$1.67||28.52|
|Cantel Medical||$871.92 million||3.28||$91.04 million||$2.51||27.34|
Globus Medical has higher earnings, but lower revenue than Cantel Medical. Cantel Medical is trading at a lower price-to-earnings ratio than Globus Medical, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for Globus Medical and Cantel Medical, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Globus Medical presently has a consensus price target of $56.20, suggesting a potential upside of 17.99%. Cantel Medical has a consensus price target of $114.00, suggesting a potential upside of 66.13%. Given Cantel Medical’s higher probable upside, analysts plainly believe Cantel Medical is more favorable than Globus Medical.
Institutional & Insider Ownership
69.3% of Globus Medical shares are owned by institutional investors. Comparatively, 86.0% of Cantel Medical shares are owned by institutional investors. 28.4% of Globus Medical shares are owned by insiders. Comparatively, 11.7% of Cantel Medical shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Globus Medical beats Cantel Medical on 8 of the 15 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 Cantel Medical
Cantel Medical Corp. provides infection prevention and control products and services for the healthcare market. The company's Endoscopy segment offers automated endoscope reprocessing systems; infectants and sterilants; detergents; leak testing and manual cleaning products; storage cabinets, transport systems, and mobile medical carts; manual cleaning products; endoscope process tracking products; other consumables, accessories, and supplies for use in disinfect rigid endoscopes, flexible endoscopes, and other instrumentation; and technical maintenance services. Its Water Purification and Filtration segment provides dialysis water purification and bicarbonate mixing systems; hollow fiber filters, and other filtration and separation products; liquid disinfectants and cold sterilization products; dry fog products; room temperature sterilization equipment and services; and clean-room certification and decontamination services for the dialysis and other healthcare, research laboratory and pharmaceutical, food and beverage, and commercial industrial customers. The company's Healthcare Disposables segment offers biological indicators, chemical integrators, sterilization pouches, towels, bibs, tray liners, sponges, nitrous oxide/oxygen sedation equipment and related single-use disposable nasal masks, face masks, and shields. It also provides hand sanitizers, germicidal wipes, disinfectants, surface disinfectants, waterline treatment products, amalgam separators, saliva ejectors, evacuator tips, plastic cups, prophy angles, and prophy paste. The company's Dialysis segment provides hemodialysis concentrates and other ancillary supplies; medical device reprocessing systems; and sterilants and disinfectants. The company sells its products through its direct distribution network in the United States; and directly or under third-party distribution agreements internationally. Cantel Medical Corp. was founded in 1963 and is headquartered in Little Falls, New Jersey.
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