Sunshine Heart (NASDAQ: SSH) and Globus Medical (NYSE:GMED) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their profitabiliy, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.
Valuation and Earnings
This table compares Sunshine Heart and Globus Medical’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Sunshine Heart | N/A | N/A | N/A | ($33.63) | -0.02 |
| Globus Medical | $580.54 million | 5.11 | $205.33 million | $1.09 | 28.30 |
Globus Medical has higher revenue and earnings than Sunshine Heart. Sunshine Heart 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
69.5% of Globus Medical shares are owned by institutional investors. 3.0% of Sunshine Heart shares are owned by insiders. Comparatively, 28.2% of Globus Medical shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of current recommendations and price targets for Sunshine Heart and Globus Medical, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sunshine Heart | 0 | 0 | 0 | 0 | N/A |
| Globus Medical | 1 | 5 | 3 | 0 | 2.22 |
Sunshine Heart presently has a consensus target price of $0.23, suggesting a potential downside of 62.47%. Globus Medical has a consensus target price of $29.33, suggesting a potential downside of 4.92%. Given Globus Medical’s higher probable upside, analysts plainly believe Globus Medical is more favorable than Sunshine Heart.
Profitability
This table compares Sunshine Heart and Globus Medical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sunshine Heart | N/A | -302.32% | -126.49% |
| Globus Medical | 18.09% | 14.15% | 12.73% |
Volatility and Risk
Sunshine Heart has a beta of 2.59, suggesting that its share price is 159% more volatile than the S&P 500. Comparatively, Globus Medical has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.
Summary
Globus Medical beats Sunshine Heart on 9 of the 10 factors compared between the two stocks.
Globus Medical Company Profile
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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