Head-To-Head Review: CONMED (NYSE:CNMD) and Globus Medical (NYSE:GMED)
by Amy Steele · The Cerbat GemCONMED (NYSE:CNMD – Get Free Report) and Globus Medical (NYSE:GMED – Get Free Report) are both healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.
Earnings & Valuation
This table compares CONMED and Globus Medical”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CONMED | $1.37 billion | 0.99 | $47.06 million | $1.85 | 24.54 |
| Globus Medical | $2.94 billion | 3.41 | $537.87 million | $3.91 | 19.07 |
Globus Medical has higher revenue and earnings than CONMED. Globus Medical is trading at a lower price-to-earnings ratio than CONMED, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
95.2% of Globus Medical shares are owned by institutional investors. 0.3% of CONMED shares are owned by company insiders. Comparatively, 18.4% of Globus Medical shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility & Risk
CONMED has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Globus Medical has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.
Profitability
This table compares CONMED and Globus Medical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CONMED | 4.12% | 14.31% | 6.33% |
| Globus Medical | 17.02% | 14.57% | 12.62% |
Analyst Ratings
This is a breakdown of recent ratings for CONMED and Globus Medical, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CONMED | 1 | 7 | 0 | 0 | 1.88 |
| Globus Medical | 0 | 5 | 9 | 3 | 2.88 |
CONMED currently has a consensus price target of $41.40, suggesting a potential downside of 8.82%. Globus Medical has a consensus price target of $101.77, suggesting a potential upside of 36.49%. Given Globus Medical’s stronger consensus rating and higher possible upside, analysts clearly believe Globus Medical is more favorable than CONMED.
Summary
Globus Medical beats CONMED on 14 of the 15 factors compared between the two stocks.
About CONMED
CONMED Corporation, a medical technology company, develops, manufactures, and sells surgical devices and related equipment for surgical procedures worldwide. The company offers orthopedic surgery products, including BioBrace, TruShot with Y-Knot All-In-One Soft Tissue Fixation System, Y-knot All-Suture Anchors, and Agro Knotless Suture Anchors, which provide clinical solutions to orthopedic surgeons for the augmentation and repair of soft tissue injuries, as well as provides supporting products that enable surgeons to perform minimally invasive sports medicine surgeries. It markets orthopedic surgery products under the Hall, CONMED Linvatec, Concept, and Shutt brands. The company also provides battery-powered and autoclavable bone power tool systems for use in orthopedic, arthroscopic, oral/maxillofacial, podiatric, spinal, and cardiothoracic surgeries under Hall surgical brand name. In addition, it offers general surgery products, including clinical insufflation systems under AirSeal brand; smoke removal devices under Buffalo Filter brand; endomechanical products, such as tissue retrieval bags, trocars, suction irrigation devices, graspers, scissors, and dissectors used in minimally invasive surgeries; and electrosurgical solution comprising monopolar and bipolar generators, argon beam coagulation generators, handpieces, smoke management systems and other accessories. Further, the company provides endoscopic technologies, including therapeutic and diagnostic products for use in gastroenterology procedures, and products for the treatment of diseases of the dilatation, hemostasis, biliary, structure management, and infection prevention and patient monitoring, including ECG and EEG electrodes, and cardiac defibrillation pads. It markets its products directly to hospitals, surgery centers, and other healthcare institutions, as well as through medical specialty distributors. CONMED Corporation was incorporated in 1970 and is headquartered in Largo, Florida.
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.