Wright Medical Group (WMGI) versus MSA Safety (MSA) Head to Head Review

Wright Medical Group (NYSE: MSA) and MSA Safety (NYSE:MSA) are both mid-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Insider and Institutional Ownership

71.2% of MSA Safety shares are owned by institutional investors. 4.0% of Wright Medical Group shares are owned by insiders. Comparatively, 9.9% of MSA Safety shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Wright Medical Group has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, MSA Safety has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Wright Medical Group and MSA Safety, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wright Medical Group 0 1 12 0 2.92
MSA Safety 0 1 2 0 2.67

Wright Medical Group currently has a consensus price target of $31.08, suggesting a potential upside of 12.01%. MSA Safety has a consensus price target of $104.00, suggesting a potential upside of 0.42%. Given Wright Medical Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Wright Medical Group is more favorable than MSA Safety.

Dividends

MSA Safety pays an annual dividend of $1.52 per share and has a dividend yield of 1.5%. Wright Medical Group does not pay a dividend. MSA Safety pays out 39.3% of its earnings in the form of a dividend. MSA Safety has raised its dividend for 46 consecutive years.

Profitability

This table compares Wright Medical Group and MSA Safety’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wright Medical Group -24.74% -1.94% -0.50%
MSA Safety 4.94% 27.00% 10.15%

Valuation and Earnings

This table compares Wright Medical Group and MSA Safety’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wright Medical Group $744.99 million 3.97 -$202.59 million ($0.22) -126.14
MSA Safety $1.20 billion 3.33 $26.02 million $3.87 26.76

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

Summary

MSA Safety beats Wright Medical Group on 12 of the 17 factors compared between the two stocks.

Wright Medical Group Company Profile

Wright Medical Group N.V., a medical device company, designs, manufactures, markets, and sells extremities and biologics products. The company offers joint implants and bone fixation devices for the shoulder, elbow, wrist, hand, foot, and ankle; and biologics products that are used for supporting the treatment of damaged or diseased bones, tendons, and soft tissues, as well as to stimulate bone growth. It also provides sports medicines and other products to mechanically repair tissue-to-tissue or tissue-to-bone injuries, as well as other ancillary products. The company primarily offers its products to orthopaedic, trauma, and podiatric surgeons. It markets and sells its products through direct sales representatives and independent sales agencies in the United States, as well as direct sales offices and distributors in approximately 50 countries. The company was founded in 1999 and is headquartered in Amsterdam, the Netherlands.

MSA Safety Company Profile

MSA Safety Incorporated develops, manufactures, and supplies safety products that protect people and facility infrastructures in the oil, gas, petrochemical, fire service, construction, utilities, and mining industries worldwide. It operates through Americas and International segments. The company's core product offerings include permanently installed fixed gas and flame detection instruments, such as permanently installed gas detection monitoring systems, and flame detectors and open-path infrared gas detectors, as well as replacement components and related services to detect the presence or absence of various gases in the air. Its core product offerings also consist of breathing apparatus products, such as self-contained breathing apparatus, face masks, and respirators; hand-held portable gas detection instruments; industrial head protection products; firefighter helmets and protective apparel; and fall protection equipment comprising confined space equipment, harnesses, fall arrest equipment, lanyards, and lifelines. In addition, the company offers respirators, eye and face protection products, ballistic helmets, and gas masks. It serves distributors, and industrial or military end-users through indirect and direct sales channels. The company was founded in 1914 and is based in Cranberry Township, Pennsylvania.

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