Meridian Bioscience (NASDAQ: VIVO) and Haemonetics Corporation (NYSE:HAE) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Dividends

Meridian Bioscience pays an annual dividend of $0.50 per share and has a dividend yield of 3.4%. Haemonetics Corporation does not pay a dividend. Meridian Bioscience pays out 98.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Meridian Bioscience and Haemonetics Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Meridian Bioscience 10.77% 16.93% 11.36%
Haemonetics Corporation 0.48% 11.07% 6.54%

Earnings and Valuation

This table compares Meridian Bioscience and Haemonetics Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Meridian Bioscience $198.07 million 3.09 $52.80 million $0.51 28.43
Haemonetics Corporation $887.11 million 2.76 $164.54 million $0.08 581.20

Haemonetics Corporation has higher revenue and earnings than Meridian Bioscience. Meridian Bioscience is trading at a lower price-to-earnings ratio than Haemonetics Corporation, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Meridian Bioscience and Haemonetics Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Meridian Bioscience 1 3 0 0 1.75
Haemonetics Corporation 0 3 3 0 2.50

Meridian Bioscience currently has a consensus target price of $14.00, indicating a potential downside of 3.45%. Haemonetics Corporation has a consensus target price of $44.60, indicating a potential downside of 4.07%. Given Meridian Bioscience’s higher possible upside, analysts clearly believe Meridian Bioscience is more favorable than Haemonetics Corporation.

Volatility and Risk

Meridian Bioscience has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, Haemonetics Corporation has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.

Institutional and Insider Ownership

87.2% of Meridian Bioscience shares are owned by institutional investors. 2.3% of Meridian Bioscience shares are owned by company insiders. Comparatively, 1.2% of Haemonetics Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Meridian Bioscience beats Haemonetics Corporation on 10 of the 16 factors compared between the two stocks.

About Meridian Bioscience

Meridian Bioscience, Inc. is a life science company engaged in the development, manufacture, sale and distribution of diagnostic test kits for gastrointestinal, viral, respiratory and parasitic infectious diseases, and elevated blood lead levels, and the manufacture and distribution of bulk antigens, antibodies, polymerase chain reaction (PCR)/quantitative PCR (qPCR) reagents, nucleotides, competent cells and bioresearch reagents used by researchers and other diagnostic manufacturers. Its segments include Diagnostics and Life Science. The Diagnostics segment includes manufacturing operations in Cincinnati, and the sale and distribution of diagnostic test kits in the countries consisting of North, Central and South America; Europe, the Middle East and Africa (EMEA), and other countries outside of the Americas and EMEA. The Life Science segment consists of manufacturing operations in Memphis, Tennessee; Boca Raton, Florida; London, England; Luckenwalde, Germany, and Sydney, Australia.

About Haemonetics Corporation

Haemonetics Corporation (Haemonetics) is a healthcare company. The Company provides various products to customers involved in the processing, handling and analysis of blood. The Company’s segments include Japan, EMEA, North America Plasma and All Other. Haemonetics provides plasma collection systems and software, which enable plasma fractionators to make pharmaceuticals. The Company enables plasma collection customers to source from it a range of products necessary for plasma collection and storage, including PCS brand plasma collection equipment and disposables, plasma collection containers and intravenous solutions, such as saline. Haemonetics offers automated blood component and manual whole blood collection systems to blood collection centers to collect blood products. The Company offers a range of blood management solutions. The Company has a suite of integrated software solutions, which include solutions for blood drive planning and blood collection.

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