Globus Medical (NYSE:GMED) vs. GBS (NYSE:GBS) Head to Head Analysis

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

Insider and Institutional Ownership

95.2% of Globus Medical shares are held by institutional investors. Comparatively, 2.8% of GBS shares are held by institutional investors. 24.3% of Globus Medical shares are held by company insiders. Comparatively, 0.3% of GBS shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Globus Medical and GBS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Globus Medical	0	3	6	0	2.67
GBS	0	0	0	0	N/A

Globus Medical currently has a consensus price target of $66.33, indicating a potential upside of 31.74%. Given Globus Medical’s higher possible upside, equities analysts plainly believe Globus Medical is more favorable than GBS.

Risk and Volatility

Globus Medical has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, GBS has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Globus Medical	7.83%	8.82%	7.20%
GBS	N/A	-85.64%	-54.42%

Valuation and Earnings

This table compares Globus Medical and GBS’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Globus Medical	$1.02 billion	6.68	$122.87 million	$1.17	43.05
GBS	$440,000.00	94.75	-$8.31 million	($0.56)	-5.00

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

Summary

Globus Medical beats GBS on 11 of the 13 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 GBS

GBS Inc. operates as a biosensor diagnostic technology company in the Asia-Pacific and North America. It offers Saliva Glucose Biosensor, an organic thin-film transistor for diabetes management that measures glucose in saliva. The company also focuses on developing SARS-CoV-2 Biosensor, a biosensor test can be used as a complement to the (RNA) virus detection test; and a biosensor platform comprising of biochemistry, immunology, tumor markers, hormones, and nucleic acid diagnostic modalities. GBS Inc. has a research agreement with Johns Hopkins Bloomberg School of Public Health for the development of saliva-based diagnostic tests. The company was formerly known as Glucose Biosensor Systems (Greater China) Holdings, Inc. and changed its name to GBS Inc. in September 2019. The company was incorporated in 2016 and is headquartered in New York, New York. GBS Inc. is a subsidiary of Life Science Biosensor Diagnostics Pty Ltd.