Treace Medical Concepts (NASDAQ:TMCI) vs. Globus Medical (NYSE:GMED) Head-To-Head Comparison

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

Profitability

This table compares Globus Medical and Treace Medical Concepts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Globus Medical	3.51%	8.82%	7.06%
Treace Medical Concepts	-27.93%	-39.66%	-22.24%

Earnings & Valuation

This table compares Globus Medical and Treace Medical Concepts’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Globus Medical	$1.57 billion	6.05	$122.87 million	$0.64	109.50
Treace Medical Concepts	$187.12 million	2.18	-$49.53 million	($0.88)	-7.49

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

Insider and Institutional Ownership

95.2% of Globus Medical shares are held by institutional investors. Comparatively, 84.1% of Treace Medical Concepts shares are held by institutional investors. 18.5% of Globus Medical shares are held by insiders. Comparatively, 24.4% of Treace Medical Concepts shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Globus Medical has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, Treace Medical Concepts has a beta of 0.22, suggesting that its stock price is 78% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Globus Medical and Treace Medical Concepts, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Globus Medical	0	4	7	0	2.64
Treace Medical Concepts	0	7	0	0	2.00

Globus Medical presently has a consensus price target of $73.30, suggesting a potential upside of 4.59%. Treace Medical Concepts has a consensus price target of $12.86, suggesting a potential upside of 95.10%. Given Treace Medical Concepts’ higher probable upside, analysts plainly believe Treace Medical Concepts is more favorable than Globus Medical.

Summary

Globus Medical beats Treace Medical Concepts on 12 of the 14 factors compared between the two stocks.

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.

About Treace Medical Concepts

Treace Medical Concepts, Inc., a medical technology company, designs, manufactures, and markets medical devices in the United States. The company offers Lapiplasty 3D bunion correction system that combines instruments, implants, and surgical methods designed to surgically correct three planes of the bunion deformity. It also provides Lapiplasty mini-incision system designed to allow the Lapiplasty procedure to be performed through a 3.5cm incision. In addition, the company offers Adductoplasty system designed for reproducible realignment, stabilization, and fusion of the midfoot. Treace Medical Concepts, Inc. was founded in 2013 and is headquartered in Ponte Vedra, Florida.