Financial Comparison: Globus Medical (NYSE:GMED) versus Solana (NASDAQ:HSDT)

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

Volatility & Risk

Solana has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Globus Medical has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Solana and Globus Medical, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solana	1	1	1	1	2.50
Globus Medical	0	4	9	2	2.87

Solana currently has a consensus price target of $3.50, suggesting a potential upside of 114.72%. Globus Medical has a consensus price target of $105.00, suggesting a potential upside of 32.83%. Given Solana’s higher possible upside, analysts plainly believe Solana is more favorable than Globus Medical.

Institutional & Insider Ownership

18.6% of Solana shares are held by institutional investors. Comparatively, 95.2% of Globus Medical shares are held by institutional investors. 14.4% of Solana shares are held by insiders. Comparatively, 18.4% of Globus Medical shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Solana 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
Solana	$6.02 million	15.81	-$40.89 million	($109.67)	-0.01
Globus Medical	$3.10 billion	3.46	$537.87 million	$4.30	18.38

Globus Medical has higher revenue and earnings than Solana. Solana 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 Solana and Globus Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Solana	-1,427.15%	-67.57%	-24.09%
Globus Medical	18.92%	13.46%	11.65%

Summary

Globus Medical beats Solana on 12 of the 15 factors compared between the two stocks.

About Solana

Helius Medical Technologies, Inc., a neurotechnology company, focuses on developing, licensing, and acquiring non-implantable technologies for the treatment of symptoms caused by neurological disease or trauma. The company's product is Portable Neuromodulation Stimulator, a non-surgical medical device intended for use as a short term treatment of gait deficit due to symptoms from multiple sclerosis and balance deficit due to mild-to-moderate traumatic brain injury, as well as to be used in conjunction with supervised therapeutic exercise. The company was incorporated in 2014 and is headquartered in Newtown, 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.