Acutus Medical (NASDAQ:AFIB) versus Globus Medical (NYSE:GMED) Financial Review

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

Earnings & Valuation

This table compares Globus Medical and Acutus Medical’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Globus Medical	$1.02 billion	6.87	$122.87 million	$1.17	44.27
Acutus Medical	$7.16 million	0.69	-$81.66 million	($1.24)	-0.13

Globus Medical has higher revenue and earnings than Acutus Medical. Acutus Medical 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, 56.9% of Acutus Medical shares are held by institutional investors. 24.3% of Globus Medical shares are held by insiders. Comparatively, 3.5% of Acutus Medical 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.

Risk & Volatility

Globus Medical has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Acutus Medical has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Globus Medical and Acutus Medical, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Globus Medical	0	3	6	0	2.67
Acutus Medical	0	0	0	0	N/A

Globus Medical presently has a consensus price target of $66.33, suggesting a potential upside of 28.08%. Given Globus Medical’s higher possible upside, research analysts clearly believe Globus Medical is more favorable than Acutus Medical.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Globus Medical	7.83%	8.82%	7.20%
Acutus Medical	-166.79%	-35.31%	-13.43%

Summary

Globus Medical beats Acutus Medical on 13 of the 13 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 Acutus Medical

Acutus Medical, Inc., an arrhythmia management company, designs, manufactures, and markets various tools for catheter-based ablation procedures to treat various arrhythmias in the United States and internationally. Its product portfolio includes novel access sheaths, transseptal crossing tools, diagnostic and mapping catheters, conventional and contact force ablation catheters, and mapping and imaging consoles and accessories, as well as supporting algorithms and software programs. The company was incorporated in 2011 and is headquartered in Carlsbad, California.