Comparing TELA Bio (NASDAQ:TELA) and Globus Medical (NYSE:GMED)

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

Analyst Recommendations

This is a summary of recent ratings and target prices for TELA Bio and Globus Medical, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TELA Bio	1	1	3	0	2.40
Globus Medical	0	5	9	3	2.88

TELA Bio currently has a consensus target price of $2.20, suggesting a potential upside of 143.07%. Globus Medical has a consensus target price of $101.77, suggesting a potential upside of 38.25%. Given TELA Bio’s higher possible upside, analysts plainly believe TELA Bio is more favorable than Globus Medical.

Volatility and Risk

TELA Bio has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, Globus Medical has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TELA Bio	-51.53%	-1,320.81%	-59.39%
Globus Medical	17.02%	14.57%	12.62%

Insider & Institutional Ownership

94.3% of TELA Bio shares are owned by institutional investors. Comparatively, 95.2% of Globus Medical shares are owned by institutional investors. 5.1% of TELA Bio shares are owned by company insiders. Comparatively, 18.4% of Globus Medical shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares TELA Bio and Globus Medical”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TELA Bio	$80.28 million	0.51	-$38.83 million	($0.77)	-1.18
Globus Medical	$2.94 billion	3.36	$537.87 million	$3.91	18.83

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

Summary

Globus Medical beats TELA Bio on 13 of the 15 factors compared between the two stocks.

About TELA Bio

TELA Bio, Inc., a commercial-stage medical technology company, focuses on providing soft-tissue reconstruction solutions that optimize clinical outcomes by prioritizing the preservation and restoration of the patient's anatomy. The company provides a portfolio of OviTex Reinforced Tissue Matrix (OviTex) products for hernia repair and abdominal wall reconstruction; and OviTex PRS Reinforced Tissue Matrix products to address the unmet needs in plastic and reconstructive surgery, as well as OviTex for Laparoscopic and Robotic Procedures, a sterile reinforced tissue matrix derived from ovine rumen with polypropylene fiber intended to be used in laparoscopic and robotic-assisted hernia surgical repairs. It markets its products through a single direct sales force, principally in the United States. The company was incorporated in 2012 and is headquartered in Malvern, Pennsylvania.

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.