Palomar Medical Technologies (NASDAQ: PMTI) and Globus Medical (NYSE:GMED) are both healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.
Insider & Institutional Ownership
67.8% of Globus Medical shares are owned by institutional investors. 28.2% of Globus Medical shares are owned by company 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.
This table compares Palomar Medical Technologies and Globus Medical’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Palomar Medical Technologies||N/A||N/A||N/A|
Risk and Volatility
Palomar Medical Technologies has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500. Comparatively, Globus Medical has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.
Earnings and Valuation
This table compares Palomar Medical Technologies and Globus Medical’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Palomar Medical Technologies||N/A||N/A||N/A||($0.27)||-49.67|
|Globus Medical||$563.99 million||6.21||$104.34 million||$1.10||33.05|
Globus Medical has higher revenue and earnings than Palomar Medical Technologies. Palomar Medical Technologies 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 Palomar Medical Technologies and Globus Medical, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Palomar Medical Technologies||0||0||0||0||N/A|
Globus Medical has a consensus price target of $35.00, suggesting a potential downside of 3.71%. Given Globus Medical’s higher probable upside, analysts clearly believe Globus Medical is more favorable than Palomar Medical Technologies.
Globus Medical beats Palomar Medical Technologies on 9 of the 10 factors compared between the two stocks.
About Palomar Medical Technologies
Palomar Medical Technologies, Inc. (Palomar) is a researcher and developer of aesthetic light-based systems for hair removal and other cosmetic procedures, including both lasers and high powered lamps. The Company offers a range of products based on technologies that include, but are not limited to: hair removal; body sculpting, including laser-assisted liposuction; removal of vascular lesions, such as rosacea, spider veins, port wine stains and hemangiomas; wrinkle reduction; removal of leg veins; removal of benign pigmented lesions, such as age and sun spots, freckles and melasma; tattoo removal; acne treatment; skin resurfacing, pseudofolliculitis barbae (PFB) treatment; treatment of red pigmentation in hypertrophic and keloid scars; treatment of verrucae, skin tags and seborrheic keratosis; skin tightening through soft tissue coagulation; scars, and other skin treatments. In June 2013, Cynosure Inc announced the completion of its acquisition of Palomar Medical Technologies Inc.
About Globus Medical
Globus Medical, Inc. (Globus) is a medical device company focused on the design, development and commercialization of musculoskeletal implants that promote healing in patients with spine disorders. The Company is focused on implants that promote healing in patients with spine disorders. The Company’s products fall into one of two categories: Innovative Fusion or Disruptive Technologies. The Company sells its products through exclusive sales force in the United States, as well as within North, Central & South America, Europe, Asia, Africa and Australia. The sales force consists of direct sales representatives and distributor sales representatives employed by exclusive independent distributors.
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