Beauty Health (NASDAQ:SKIN – Get Free Report) and Globus Medical (NYSE:GMED – Get Free Report) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.
Institutional and Insider Ownership
93.3% of Beauty Health shares are owned by institutional investors. Comparatively, 95.2% of Globus Medical shares are owned by institutional investors. 41.0% of Beauty Health shares are owned by company insiders. Comparatively, 18.5% of Globus Medical shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Beauty Health and Globus Medical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Beauty Health | -8.11% | -44.83% | -3.54% |
| Globus Medical | 3.69% | 9.98% | 7.92% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Beauty Health | 1 | 3 | 1 | 0 | 2.00 |
| Globus Medical | 1 | 2 | 9 | 0 | 2.67 |
Beauty Health presently has a consensus target price of $2.55, indicating a potential upside of 54.55%. Globus Medical has a consensus target price of $94.55, indicating a potential upside of 14.20%. Given Beauty Health’s higher possible upside, equities analysts plainly believe Beauty Health is more favorable than Globus Medical.
Risk and Volatility
Beauty Health has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Globus Medical has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500.
Valuation & Earnings
This table compares Beauty Health 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 | |
| Beauty Health | $347.62 million | 0.59 | -$100.12 million | ($0.42) | -3.93 |
| Globus Medical | $2.48 billion | 4.55 | $122.87 million | $0.67 | 123.57 |
Globus Medical has higher revenue and earnings than Beauty Health. Beauty Health 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 Beauty Health on 12 of the 14 factors compared between the two stocks.
About Beauty Health
The Beauty Health Company designs, develops, manufactures, markets, and sells aesthetic technologies and products worldwide. The company's flagship product includes HydraFacial that enhance the skin to cleanse, extract, and hydrate the skin with proprietary solutions and serums. Its products also comprise Syndeo, a Delivery System designs to connects providers to the consumer's preferences to create a more personalized experience; consumables, such as single-use tips, solutions, and serums used to provide a hydrafacial treatment; SkinStylus SteriLock Microsystem, a microneedling device used for the treatment of enhancing appearance of surgical or traumatic hypertrophic scars on the abdomen and facial acne scarring in Fitzpatrick skin types I, II, and III; and Keravive, a treatment for scalp health. The company was founded in 1997 and is headquartered in Long Beach, California.
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.
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