Henry Schein (NASDAQ: HSIC) and Merit Medical Systems (NASDAQ:MMSI) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitabiliy, earnings, dividends and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
Henry Schein 4.53% 19.74% 8.42%
Merit Medical Systems 4.80% 9.36% 5.35%

Volatility & Risk

Henry Schein has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, Merit Medical Systems has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.

Institutional and Insider Ownership

90.7% of Henry Schein shares are owned by institutional investors. Comparatively, 90.5% of Merit Medical Systems shares are owned by institutional investors. 1.3% of Henry Schein shares are owned by insiders. Comparatively, 5.6% of Merit Medical Systems shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Henry Schein and Merit Medical Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Henry Schein 0 9 5 0 2.36
Merit Medical Systems 0 2 6 0 2.75

Henry Schein presently has a consensus target price of $182.25, suggesting a potential downside of 1.04%. Merit Medical Systems has a consensus target price of $34.78, suggesting a potential downside of 7.98%. Given Henry Schein’s higher probable upside, equities research analysts plainly believe Henry Schein is more favorable than Merit Medical Systems.

Valuation & Earnings

This table compares Henry Schein and Merit Medical Systems’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Henry Schein $11.78 billion 1.24 $1.00 billion $6.58 27.99
Merit Medical Systems $636.83 million 2.96 $95.95 million $0.67 56.42

Henry Schein has higher revenue and earnings than Merit Medical Systems. Henry Schein 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.

Henry Schein Company Profile

Henry Schein, Inc. is a provider of healthcare products and services primarily to office-based dental, animal health and medical practitioners. The Company operates through two segments: healthcare distribution, and technology and value-added services. The healthcare distribution segment distributes consumable products, small equipment, laboratory products, large equipment, equipment repair services, branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products and vitamins. The technology and value-added services segment provides software, technology and other value-added services to healthcare practitioners. Its technology group offerings include practice management software systems for dental and medical practitioners and animal health clinics. The Company provides its services to dental practitioners and laboratories, animal health clinics and physician practices, as well as government and institutional healthcare clinics.

Merit Medical Systems Company Profile

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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