Entellus Medical (NASDAQ: ENTL) and Merit Medical Systems (NASDAQ:MMSI) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitabiliy, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares Entellus Medical and Merit Medical Systems’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Entellus Medical $77.39 million 4.03 -$25.43 million ($1.56) -9.12
Merit Medical Systems $636.83 million 2.77 $95.95 million $0.67 52.76

Merit Medical Systems has higher revenue and earnings than Entellus Medical. Entellus Medical is trading at a lower price-to-earnings ratio than Merit Medical Systems, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for Entellus Medical and Merit Medical Systems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Entellus Medical 1 2 4 0 2.43
Merit Medical Systems 0 2 5 0 2.71

Entellus Medical presently has a consensus target price of $22.00, indicating a potential upside of 54.71%. Merit Medical Systems has a consensus target price of $33.14, indicating a potential downside of 6.25%. Given Entellus Medical’s higher probable upside, research analysts clearly believe Entellus Medical is more favorable than Merit Medical Systems.

Insider and Institutional Ownership

75.8% of Entellus Medical shares are held by institutional investors. Comparatively, 90.5% of Merit Medical Systems shares are held by institutional investors. 9.1% of Entellus Medical shares are held by company insiders. Comparatively, 5.6% of Merit Medical Systems shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Entellus Medical and Merit Medical Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Entellus Medical -39.02% -60.56% -35.90%
Merit Medical Systems 4.80% 9.36% 5.35%

Volatility and Risk

Entellus Medical has a beta of 0.04, suggesting that its stock price is 96% less volatile than the S&P 500. Comparatively, Merit Medical Systems has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.

Summary

Merit Medical Systems beats Entellus Medical on 10 of the 13 factors compared between the two stocks.

About Entellus Medical

Entellus Medical, Inc. is a medical technology company. The Company is focused on delivering patient and physician experiences through products designed for the minimally invasive treatment of chronic and recurrent sinusitis in both adult and pediatric patients. Its three core product lines, XprESS Multi-Sinus Dilation Systems, MiniFESS Surgical Instruments, and FocESS Imaging & Navigation, are designed to enable ear, nose and throat (ENT), physicians to perform a range of procedures in the ENT physician office and to simplify operating room-based treatment. The Company’s XprESS Multi-Sinus Dilation family of products consists of its XprESS Pro device, its XprESS LoProfile device and its XprESS Ultra device. The MiniFESS family of surgical instruments includes eight devices designed to enable physicians to perform various surgical procedures. The Fiagon Image Guidance System (IGS) consists of a navigation unit, navigation sensor, software instruments and a patient localizer.

About Merit Medical Systems

Merit Medical Systems, Inc. is a manufacturer and marketer of disposable medical devices used in a range of interventional, diagnostic and therapeutic medical procedures. The Company operates in two segments: cardiovascular and endoscopy. The cardiovascular segment consists of cardiology and radiology devices, which assist in diagnosing and treating coronary arterial disease, peripheral vascular disease and other non-vascular diseases, and includes embolotherapeutic, cardiac rhythm management (CRM), electrophysiology (EP), and interventional oncology and spine devices. Its endoscopy segment consists of gastroenterology and pulmonology medical devices, which assist in the palliative treatment of expanding esophageal, tracheobronchial and biliary strictures caused by malignant tumors. Within its segments, the Company offers products focused in four product groups: peripheral intervention, cardiac intervention, interventional oncology and spine, and endoscopy.

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