Analyzing Globus Medical (NYSE:GMED) & Inogen (NASDAQ:INGN)

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

Institutional & Insider Ownership

95.2% of Globus Medical shares are held by institutional investors. Comparatively, 89.9% of Inogen shares are held by institutional investors. 18.4% of Globus Medical shares are held by company insiders. Comparatively, 2.5% of Inogen shares are held by company 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.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Globus Medical	$2.94 billion	3.92	$537.87 million	$4.30	19.73
Inogen	$351.50 million	0.49	-$22.75 million	($0.91)	-7.03

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

Volatility and Risk

Globus Medical has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Inogen has a beta of 1.64, suggesting that its share price is 64% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Globus Medical	18.92%	13.46%	11.65%
Inogen	-7.08%	-12.90%	-8.27%

Analyst Recommendations

This is a summary of current ratings and price targets for Globus Medical and Inogen, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Globus Medical	0	5	9	2	2.81
Inogen	1	0	1	1	2.67

Globus Medical currently has a consensus price target of $106.36, indicating a potential upside of 25.37%. Inogen has a consensus price target of $14.00, indicating a potential upside of 118.75%. Given Inogen’s higher possible upside, analysts clearly believe Inogen is more favorable than Globus Medical.

Summary

Globus Medical beats Inogen on 13 of the 15 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 Inogen

Inogen, Inc., a medical technology company, develops, manufactures, and markets portable oxygen concentrators to patients, physicians and other clinicians, and third-party payors in the United States and internationally. Its oxygen concentrators are used to deliver supplemental long-term oxygen therapy to patients suffering from chronic respiratory conditions. The company offers Inogen One, a portable device that concentrate the air around the patient to provide a source of supplemental oxygen; Inogen At Home stationary oxygen concentrators; Simeox airway clearance; batteries; and related accessories. It also rents its products directly to patients. Inogen, Inc. was incorporated in 2001 and is headquartered in Goleta, California.