Comparing Globus Medical (NYSE:GMED) and Co-Diagnostics (NASDAQ:CODX)

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

Volatility and Risk

Co-Diagnostics has a beta of -0.63, meaning that its share price is 163% less volatile than the S&P 500. Comparatively, Globus Medical has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.

Earnings and Valuation

This table compares Co-Diagnostics 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
Co-Diagnostics	$7.32 million	2.53	-$35.33 million	($1.38)	-0.42
Globus Medical	$2.52 billion	4.30	$122.87 million	$0.75	106.20

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

	Net Margins	Return on Equity	Return on Assets
Co-Diagnostics	-563.93%	-54.94%	-49.28%
Globus Medical	4.09%	10.83%	8.63%

Institutional and Insider Ownership

15.0% of Co-Diagnostics shares are held by institutional investors. Comparatively, 95.2% of Globus Medical shares are held by institutional investors. 6.1% of Co-Diagnostics shares are held by company insiders. Comparatively, 18.5% of Globus Medical shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Co-Diagnostics	0	1	0	0	2.00
Globus Medical	0	3	9	0	2.75

Co-Diagnostics currently has a consensus price target of $1.50, suggesting a potential upside of 158.93%. Globus Medical has a consensus price target of $97.82, suggesting a potential upside of 22.81%. Given Co-Diagnostics’ higher probable upside, analysts plainly believe Co-Diagnostics is more favorable than Globus Medical.

Summary

Globus Medical beats Co-Diagnostics on 13 of the 14 factors compared between the two stocks.

About Co-Diagnostics

Co-Diagnostics, Inc., a molecular diagnostics company, develops, manufactures, and sells reagents used for diagnostic tests that function through the detection and/or analysis of nucleic acid molecules in the United States and internationally. The company offers Co-Dx PCR platform, a polymerase chain reaction (PCR) testing to patients in point-of-care and at-home setting. It also provides PCR diagnostic tests for COVID-19, influenza, tuberculosis, hepatitis B and C, human papillomavirus, malaria, chikungunya, dengue, and the zika virus. In addition, the company offers three multiplexed tests to test mosquitos for the identification of diseases carried by the mosquitos; molecular tools for detection of infectious diseases, liquid biopsy for cancer screening, and agricultural applications; tests that identify genetic traits in plant and animal genomes; and portable diagnostic device designed to bring PCR to patients in point-of-care and at-home settings. The company was incorporated in 2013 and is headquartered in Salt Lake City, Utah.

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.