Reviewing Globus Medical (GMED) & Westaim (OTCMKTS:WEDXF)

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Globus Medical and Westaim, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Globus Medical 1 2 6 0 2.56
Westaim 0 0 0 0 N/A

Globus Medical presently has a consensus target price of $56.89, suggesting a potential upside of 33.54%. Given Globus Medical’s higher probable upside, analysts plainly believe Globus Medical is more favorable than Westaim.

Valuation & Earnings

This table compares Globus Medical and Westaim’s gross 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 5.91 $156.47 million $1.67 25.51
Westaim $3.70 million 81.65 $5.57 million N/A N/A

Globus Medical has higher revenue and earnings than Westaim.

Profitability

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

Net Margins Return on Equity Return on Assets
Globus Medical 20.81% 14.09% 12.95%
Westaim 372.23% 5.15% 4.38%

Volatility and Risk

Globus Medical has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, Westaim has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Insider & Institutional Ownership

68.7% of Globus Medical shares are owned by institutional investors. 25.0% of Globus Medical shares are owned by company insiders. Comparatively, 4.2% of Westaim shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Westaim pays an annual dividend of $0.10 per share and has a dividend yield of 4.7%. Globus Medical does not pay a dividend.

Summary

Globus Medical beats Westaim on 9 of the 13 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 Westaim

The Westaim Corporation is a private equity firm specializing in direct and indirect investments through acquisitions, joint ventures, secondary investments both direct and indirect, fund of fund investments, and other arrangements. For direct investments, the firm invests in early venture, mid venture, late venture, middle market, later stage, mature, emerging growth, PIPEs, and buyout transactions. For fund of fund investments, it seeks to invest in private equity funds, venture capital funds, and hedge funds. The firm seeks to provide long term capital to businesses operating in the global financial services industry. It typically acquires controlling interests in businesses. The firm seeks to acquire debt, equity, or derivative securities of both public and private companies. It invests with the objective of providing its shareholders with capital appreciation and real wealth preservation. The firm seeks to provide its portfolio companies with advisory services including, but not limited to, advice on capital allocation, financing strategy, performance measurement and merger and acquisition support. It also seeks to partner with like-minded providers of third party capital to help supplement the firm's own capital, when completing acquisitions. The firm generally seeks to hold its investments for seven to 15 years. The Westaim Corporation was founded in 1996 and is based in Toronto, Canada.

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