Head-To-Head Analysis: UFP Technologies (NASDAQ:UFPT) versus Globus Medical (NYSE:GMED)

Globus Medical (NYSE:GMED) and UFP Technologies (NASDAQ:UFPT) are both mid-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, risk, earnings, valuation and analyst recommendations.

Analyst Recommendations

This is a summary of recent recommendations for Globus Medical and UFP Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Globus Medical	0	4	7	0	2.64
UFP Technologies	0	1	2	0	2.67

Globus Medical presently has a consensus price target of $69.40, indicating a potential downside of 0.04%. UFP Technologies has a consensus price target of $277.50, indicating a potential upside of 5.17%. Given UFP Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe UFP Technologies is more favorable than Globus Medical.

Valuation and Earnings

This table compares Globus Medical and UFP Technologies’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Globus Medical	$1.57 billion	5.99	$122.87 million	$0.64	108.49
UFP Technologies	$400.07 million	5.48	$44.92 million	$6.22	45.93

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

Profitability

This table compares Globus Medical and UFP Technologies’ 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%
UFP Technologies	11.75%	17.40%	12.04%

Risk and Volatility

Globus Medical has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, UFP Technologies has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.

Institutional & Insider Ownership

95.2% of Globus Medical shares are held by institutional investors. Comparatively, 87.3% of UFP Technologies shares are held by institutional investors. 18.5% of Globus Medical shares are held by insiders. Comparatively, 6.2% of UFP Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Globus Medical beats UFP Technologies on 8 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 UFP Technologies

UFP Technologies, Inc. designs and manufactures solutions for medical devices, sterile packaging, and other highly engineered custom products. The company offers protective drapes for robotic surgery, single patient use surfaces, advanced wound care, infection prevention, disposables for surgical and endoscopic procedures, packaging for medical devices, orthopedic implants, biopharma drug manufacturing, and coils for catheters; and molded components for applications in acoustic insulation, interior trim, load floors, sunshades, SUV cargo cover handles, driveshaft damping, engine and manifold covers, quarter panels, and wheel liners. It also provides molded composites for commercial aviation and military gear for use in backpack components, knee and elbow pads, eyewear, and helmets; and reusable cases and custom for applications in military ballistics panels, virtual training systems, drones, communications equipment, and rugged portable computers. In addition, the company provides engineered products and components to customers in the automotive, aerospace and defense, and industrial markets for applications in military uniform and gear components, automotive interior trim, air filtration, and protective cases and inserts. It markets and sells its products through a direct sales force. The company was founded in 1963 and is headquartered in Newburyport, Massachusetts.