Critical Survey: Owens & Minor (OMI) versus Merit Medical Systems (MMSI)
Owens & Minor (NYSE: OMI) and Merit Medical Systems (NASDAQ:MMSI) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.
This is a summary of current ratings and recommmendations for Owens & Minor and Merit Medical Systems, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Owens & Minor||1||1||0||0||1.50|
|Merit Medical Systems||0||1||7||0||2.88|
Owens & Minor presently has a consensus target price of $32.00, suggesting a potential upside of 16.75%. Merit Medical Systems has a consensus target price of $39.59, suggesting a potential downside of 2.61%. Given Owens & Minor’s higher probable upside, equities analysts plainly believe Owens & Minor is more favorable than Merit Medical Systems.
This table compares Owens & Minor and Merit Medical Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Owens & Minor||1.02%||11.64%||4.13%|
|Merit Medical Systems||4.87%||9.78%||5.72%|
Volatility & Risk
Owens & Minor has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Merit Medical Systems has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.
Insider & Institutional Ownership
96.2% of Owens & Minor shares are owned by institutional investors. Comparatively, 91.6% of Merit Medical Systems shares are owned by institutional investors. 1.7% of Owens & Minor shares are owned by insiders. Comparatively, 5.0% of Merit Medical Systems shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Owens & Minor and Merit Medical Systems’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Owens & Minor||$9.38 billion||0.18||$229.96 million||$1.58||17.35|
|Merit Medical Systems||$672.31 million||3.03||$101.84 million||$0.70||58.07|
Owens & Minor has higher revenue and earnings than Merit Medical Systems. Owens & Minor 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.
Owens & Minor pays an annual dividend of $1.03 per share and has a dividend yield of 3.8%. Merit Medical Systems does not pay a dividend. Owens & Minor pays out 65.2% of its earnings in the form of a dividend. Owens & Minor has increased its dividend for 18 consecutive years.
Merit Medical Systems beats Owens & Minor on 9 of the 17 factors compared between the two stocks.
About Owens & Minor
Owens & Minor, Inc. is a healthcare services company that connects the world of medical products to the point of care. The Company provides supply chain assistance to the providers of healthcare services and the manufacturers of healthcare products, supplies and devices. The Company’s segments include Domestic, International and Clinical & Procedural Solutions (CPS). The Domestic Segment offers a portfolio of products and services to healthcare providers and manufacturers in the United States. The Company also offers additional services to healthcare providers, including supplier management, analytics, inventory management, outsourced resource management, clinical supply management and business process consulting. The International segment includes its European distribution and logistics business. The CPS segment provides product-related solutions, helping manufacturers and healthcare providers source, assemble and deliver procedure kits to the point-of-care.
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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