Critical Survey: Interpace Diagnostics Group (NASDAQ:IDXG) vs. Globus Medical (NASDAQ:GMED)

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

Volatility & Risk

Interpace Diagnostics Group has a beta of 2.2, indicating that its share price is 120% more volatile than the S&P 500. Comparatively, Globus Medical has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Interpace Diagnostics Group -53.75% -34.69% -24.37%
Globus Medical 20.81% 14.09% 12.95%

Analyst Ratings

This is a breakdown of current ratings for Interpace Diagnostics Group and Globus Medical, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Interpace Diagnostics Group 0 0 3 0 3.00
Globus Medical 0 3 6 0 2.67

Interpace Diagnostics Group presently has a consensus price target of $4.00, indicating a potential upside of 393.83%. Globus Medical has a consensus price target of $54.89, indicating a potential upside of 31.94%. Given Interpace Diagnostics Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe Interpace Diagnostics Group is more favorable than Globus Medical.

Institutional & Insider Ownership

22.8% of Interpace Diagnostics Group shares are owned by institutional investors. Comparatively, 66.5% of Globus Medical shares are owned by institutional investors. 2.8% of Interpace Diagnostics Group shares are owned by company insiders. Comparatively, 25.0% 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 and Earnings

This table compares Interpace Diagnostics Group 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
Interpace Diagnostics Group $21.90 million 1.41 -$12.19 million ($0.43) -1.88
Globus Medical $712.97 million 5.78 $156.47 million $1.67 24.91

Globus Medical has higher revenue and earnings than Interpace Diagnostics Group. Interpace Diagnostics Group 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 Interpace Diagnostics Group on 11 of the 14 factors compared between the two stocks.

Interpace Diagnostics Group Company Profile

Interpace Diagnostics Group, Inc. develops and commercializes molecular diagnostic tests to detect genetic and other molecular alterations associated with gastrointestinal and endocrine cancers. It offers PancraGEN, a pancreatic cyst and pancreaticobiliary solid lesion molecular test that helps physicians better assess risk of pancreaticobiliary cancers using its proprietary PathFinder platform; ThyGenX, an oncogenic mutation panel that helps identify malignant thyroid nodules; and ThyraMIR, an microRNA gene expression assay that helps to classify risk of cancer in thyroid nodules. The company's customers consist primarily of physicians, hospitals, and clinics. The company was formerly known as PDI, Inc. and changed its name to Interpace Diagnostics Group, Inc. in December 2015. Interpace Diagnostics Group, Inc. was incorporated in 1986 and is headquartered in Parsippany, New Jersey.

Globus Medical Company Profile

Globus Medical, Inc., a medical device company, focuses on the design, development, and commercialization of musculoskeletal implants that promote healing in patients with spine disorders. The company offers products that address a variety of musculoskeletal pathologies, anatomies, and surgical approaches. Its spine product portfolio includes a range of implant and surgical approach options that could be used to treat degenerative, deformity, tumor, and trauma conditions affecting the spine from the occiput to the sacrum. The company also offers imaging, navigation, and robotic assisted surgery technology solutions, as well as motion preservation technologies, such as dynamic stabilization, total disc replacement and interspinous distraction devices, and interventional pain management solutions to treat vertebral compression fractures. In addition, it provides regenerative biologic products, such as allografts and synthetic alternatives that are adjunctive treatments used in combination with stabilizing implant hardware. Further, the company offers products for the treatment of orthopedic trauma, including fracture plates, compression screws, intramedullary nails, and external fixation systems. Additionally, it distributes human cell, tissue, and cellular and tissue based products. The company sells its implants and related disposables primarily to hospitals through direct sales representatives and independent distributors in the United States and internationally. Globus Medical, Inc. was founded in 2003 and is headquartered in Audubon, Pennsylvania.

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