GMED vs MDT

For growth investors, Globus Medical, Inc.

(GMED) is the stronger pick with 16. 7% revenue growth year-over-year, versus 3. 6% for Medtronic plc (MDT). Medtronic plc (MDT) offers the better valuation at 21. 6x trailing P/E (14. 1x forward), making it the more compelling value choice. Analysts rate Globus Medical, Inc. (GMED) a "Buy" — based on 36 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Medtronic plc (MDT) is the cheapest at 21.

6x versus Globus Medical, Inc. at 21. 7x. On forward P/E, Medtronic plc is actually cheaper at 14. 1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Globus Medical, Inc. wins at 0. 61x versus Medtronic plc's 36. 00x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Globus Medical, Inc.

(GMED) delivered a total return of +16. 1%, compared to -27. 7% for Medtronic plc (MDT). Over 10 years, the gap is even starker: GMED returned +264. 4% versus MDT's +26. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Medtronic plc (MDT) is the lower-risk stock at 0.

47β versus Globus Medical, Inc. 's 1. 29β — meaning GMED is approximately 177% more volatile than MDT relative to the S&P 500. On balance sheet safety, Globus Medical, Inc. (GMED) carries a lower debt/equity ratio of 3% versus 59% for Medtronic plc — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Globus Medical, Inc.

(GMED) is pulling ahead at 16. 7% versus 3. 6% for Medtronic plc (MDT). On earnings-per-share growth, the picture is similar: Globus Medical, Inc. grew EPS 422. 7% year-over-year, compared to 30. 8% for Medtronic plc. Over a 3-year CAGR, GMED leads at 42. 2% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Globus Medical, Inc.

(GMED) is the more profitable company, earning 18. 3% net margin versus 13. 9% for Medtronic plc — meaning it keeps 18. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MDT leads at 17. 8% versus 16. 3% for GMED. At the gross margin level — before operating expenses — GMED leads at 67. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Globus Medical, Inc. (GMED) is the more undervalued stock at a PEG of 0. 61x versus Medtronic plc's 36. 00x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Medtronic plc (MDT) trades at 14. 1x forward P/E versus 19. 0x for Globus Medical, Inc. — 4. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MDT: 40. 5% to $109. 50.

In this comparison, MDT (3.

6% yield) pays a dividend. GMED does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Medtronic plc (MDT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

47), 3. 6% yield). Both have compounded well over 10 years (MDT: +26. 5%, GMED: +264. 4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: GMED is a mid-cap high-growth stock; MDT is a mid-cap income-oriented stock. MDT pays a dividend while GMED does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.