Head to Head Comparison: Patterson Companies (PDCO) vs. Merit Medical Systems (MMSI)
Patterson Companies (NASDAQ: PDCO) and Merit Medical Systems (NASDAQ:MMSI) are both mid-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.
Insider & Institutional Ownership
89.3% of Patterson Companies shares are held by institutional investors. Comparatively, 91.6% of Merit Medical Systems shares are held by institutional investors. 0.5% of Patterson Companies shares are held by insiders. Comparatively, 5.0% of Merit Medical Systems shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of recent ratings and price targets for Patterson Companies and Merit Medical Systems, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Merit Medical Systems||0||1||7||0||2.88|
Patterson Companies presently has a consensus target price of $42.50, indicating a potential upside of 16.60%. Merit Medical Systems has a consensus target price of $39.59, indicating a potential downside of 2.85%. Given Patterson Companies’ higher possible upside, equities analysts clearly believe Patterson Companies is more favorable than Merit Medical Systems.
Patterson Companies pays an annual dividend of $1.04 per share and has a dividend yield of 2.9%. Merit Medical Systems does not pay a dividend. Patterson Companies pays out 58.1% of its earnings in the form of a dividend.
This table compares Patterson Companies and Merit Medical Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Merit Medical Systems||4.87%||9.78%||5.72%|
Risk and Volatility
Patterson Companies has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Merit Medical Systems has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.
Valuation and Earnings
This table compares Patterson Companies and Merit Medical Systems’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Patterson Companies||$5.59 billion||0.61||$408.06 million||$1.79||20.36|
|Merit Medical Systems||$672.31 million||3.04||$101.84 million||$0.70||58.22|
Patterson Companies has higher revenue and earnings than Merit Medical Systems. Patterson Companies 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.
Merit Medical Systems beats Patterson Companies on 9 of the 16 factors compared between the two stocks.
Patterson Companies Company Profile
Patterson Companies, Inc. is a value-added distributor focused on providing a customer experience to professionals in the dental and animal health markets. The Company operates through three segments: dental, animal health and corporate. Dental and Animal health are strategic business units that offer similar products and services to different customer bases. Dental provides a virtually complete range of consumable dental products, equipment and software and turnkey digital solutions. In addition it provides value-added services to dentists, dental laboratories, institutions and other healthcare professionals throughout North America. Animal health is a leading, full-line distributor of animal health products, services and technologies. Corporate segment is comprised of general and administrative expenses, including home office support costs in areas such as information technology, finance, legal, human resources and facilities.
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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