Financial Analysis: Globus Medical (NYSE:GMED) vs. iCAD (NYSE:ICAD)

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

Risk & Volatility

Globus Medical has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, iCAD has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Globus Medical 19.30% 13.29% 12.24%
iCAD -43.88% -61.62% -14.97%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Globus Medical and iCAD, as reported by MarketBeat.com.

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

Globus Medical presently has a consensus target price of $55.33, indicating a potential upside of 8.43%. Given Globus Medical’s higher possible upside, equities research analysts plainly believe Globus Medical is more favorable than iCAD.

Valuation & Earnings

This table compares Globus Medical and iCAD’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Globus Medical $712.97 million 7.09 $156.47 million $1.67 30.56
iCAD $25.62 million 5.14 -$9.02 million ($0.38) -18.00

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

Institutional & Insider Ownership

67.8% of Globus Medical shares are owned by institutional investors. Comparatively, 24.7% of iCAD shares are owned by institutional investors. 25.0% of Globus Medical shares are owned by insiders. Comparatively, 10.1% of iCAD shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Globus Medical beats iCAD on 12 of the 13 factors compared between the two stocks.

Globus Medical Company Profile

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.

iCAD Company Profile

iCAD, Inc. provides image analysis, workflow solutions, and radiation therapy for the early identification and treatment of cancer in the United States and internationally. It operates through two segments, Cancer Detection and Cancer Therapy. The company provides electronic brachytherapy (eBX) products, including Axxent eBx systems for the treatment of early stage breast cancer, endometrial cancer, cervical cancer, and skin cancer, as well as for treating other cancers or conditions where radiation therapy is indicated comprising intraoperative radiation therapy. It also offers digital mammography computer-aided detection (CAD) products, such as advanced image analysis and workflow solutions in breast imaging, which include PowerLook Mammo Detection, which detects and identifies suspicious masses and micro-calcifications; and PowerLook Advanced Mammography Platform, a computer server residing on a customer's network that receives patient studies from the imaging modality, performs CAD and density assessment analysis, and sends the CAD results to picture archiving and communication system and/or review workstations. In addition, the company's digital mammography CAD products comprise magnetic resonance imaging products to detect breast and prostate cancer; breast tomosynthesis systems; and advanced image analysis and workflow solutions in computed tomography (CT) colonography, including VeraLook that supports the detection of colonic polyps in conjunction with CT colonography. It serves hospitals, ambulatory care centers and free standing radiation oncology facilities, and other office-based uses through sales organizations, as well as through various original equipment manufacturer partners, distributors, and resellers. iCAD, Inc. has a strategic partnership agreement with Invivo Corp. The company was formerly known as Howtek, Inc. and changed its name to iCAD, Inc. in June 2002. iCAD, Inc. was founded in 1984 and is headquartered in Nashua, New Hampshire.

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