Comparing Arch Therapeutics (OTCMKTS:ARTH) and Globus Medical (NYSE:GMED)

Arch Therapeutics (OTCMKTS:ARTH) and Globus Medical (NYSE:GMED) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Arch Therapeutics	-8,257.70%	N/A	-730.22%
Globus Medical	3.69%	9.98%	7.92%

Valuation and Earnings

This table compares Arch Therapeutics and Globus Medical”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arch Therapeutics	$80,000.00	16.59	-$6.98 million	N/A	N/A
Globus Medical	$2.48 billion	4.64	$122.87 million	$0.67	126.00

Globus Medical has higher revenue and earnings than Arch Therapeutics.

Analyst Ratings

This is a summary of current recommendations and price targets for Arch Therapeutics and Globus Medical, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arch Therapeutics	0	0	0	0	0.00
Globus Medical	1	2	9	0	2.67

Globus Medical has a consensus target price of $94.55, indicating a potential upside of 11.99%. Given Globus Medical’s stronger consensus rating and higher possible upside, analysts plainly believe Globus Medical is more favorable than Arch Therapeutics.

Risk & Volatility

Arch Therapeutics has a beta of 3.43, suggesting that its share price is 243% more volatile than the S&P 500. Comparatively, Globus Medical has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.

Insider and Institutional Ownership

6.9% of Arch Therapeutics shares are held by institutional investors. Comparatively, 95.2% of Globus Medical shares are held by institutional investors. 4.5% of Arch Therapeutics shares are held by insiders. Comparatively, 18.5% of Globus Medical shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Globus Medical beats Arch Therapeutics on 10 of the 12 factors compared between the two stocks.

About Arch Therapeutics

Arch Therapeutics, Inc., together with its subsidiaries, operates as a biotechnology company in the United States. It develops and markets products based on its AC5 self-assembling technology platform to stop bleeding and control leaking, as well as manages wounds during surgery, trauma, and interventional care or from disease. The company's flagship products include AC5 advanced wound system and AC5 topical hemostat, which are intended for skin applications, such as management of complicated chronic wounds or acute surgical wounds. It is also involved in the development of AC5-G for gastrointestinal endoscopic procedures, and AC5-V and AC5 surgical hemostat for hemostasis inside the body. The company was founded in 2006 and is based in Framingham, Massachusetts.

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.