Merit Medical Systems (NASDAQ:MMSI – Get Free Report) and West Pharmaceutical Services (NYSE:WST – Get Free Report) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, earnings, valuation, dividends and profitability.
Profitability
This table compares Merit Medical Systems and West Pharmaceutical Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Merit Medical Systems | 8.02% | 14.27% | 8.23% |
| West Pharmaceutical Services | 16.29% | 18.16% | 13.45% |
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Merit Medical Systems and West Pharmaceutical Services, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Merit Medical Systems | 0 | 2 | 8 | 0 | 2.80 |
| West Pharmaceutical Services | 0 | 4 | 8 | 2 | 2.86 |
Insider and Institutional Ownership
99.7% of Merit Medical Systems shares are held by institutional investors. Comparatively, 93.9% of West Pharmaceutical Services shares are held by institutional investors. 3.7% of Merit Medical Systems shares are held by company insiders. Comparatively, 0.6% of West Pharmaceutical Services shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Risk and Volatility
Merit Medical Systems has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, West Pharmaceutical Services has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.
Earnings and Valuation
This table compares Merit Medical Systems and West Pharmaceutical Services”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Merit Medical Systems | $1.36 billion | 3.80 | $120.36 million | $1.95 | 44.54 |
| West Pharmaceutical Services | $2.89 billion | 6.63 | $492.70 million | $6.75 | 39.50 |
West Pharmaceutical Services has higher revenue and earnings than Merit Medical Systems. West Pharmaceutical Services 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.
Summary
West Pharmaceutical Services beats Merit Medical Systems on 11 of the 14 factors compared between the two stocks.
About Merit Medical Systems
Merit Medical Systems, Inc. designs, develops, manufactures, and markets single-use medical products for interventional, diagnostic, and therapeutic procedures in the United States and internationally. It operates in two segments, Cardiovascular and Endoscopy. The company provides micropuncture kits, angiographic needles, sheaths, guide wires, and safety products; peripheral intervention, including angiography, drainage, delivery systems, and embolotherapy products; spine products, such as vertebral augmentation, radiofrequency ablation, and bone biopsy systems; oncology products; and cardiac intervention products, such as access, angiography, electrophysiology and cardiac rhythm management, fluid management, hemodynamic monitoring, hemostasis, and intervention to treat various heart conditions. It also offers custom procedural solutions that include critical care products, disinfection protection systems, syringes, manifold kits, and trays and packs; coating services for medical tubes and wires; and sensor components for microelectromechanical systems. In addition, the company provides pulmonary products that consist of laser-cut tracheobronchial stents, over-the-wire and direct visualization delivery systems, and dilation balloons to endoscopically dilate structures; gastroenterology products, such as covered esophageal stents, syringe and gauges, and balloon dilators; and kits and accessories for endoscopy and bronchoscopy procedures. It sells its products to hospitals and alternate site-based physicians, technicians, and nurses through direct sales force, distributors, original equipment manufacturer partners, or custom procedure tray manufacturers. The company was incorporated in 1987 and is headquartered in South Jordan, Utah.
About West Pharmaceutical Services
West Pharmaceutical Services, Inc. designs, manufactures, and sells containment and delivery systems for injectable drugs and healthcare products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in two segments, Proprietary Products and Contract-Manufactured Products. The Proprietary Products segment offers stoppers and seals for injectable packaging systems; syringe and cartridge components, including custom solutions for the needs of injectable drug applications, as well as administration systems that enhance the safe delivery of drugs through advanced reconstitution, mixing, and transfer technologies; and films, coatings, washing, and vision inspection and sterilization processes and services to enhance the quality of packaging components. This segment also provides drug containment solutions, including Crystal Zenith, a cyclic olefin polymer in the form of vials, syringes, and cartridges; and self-injection devices; and a range of integrated solutions, including analytical lab services, pre-approval primary packaging support and engineering development, regulatory expertise, and after-sales technical support. This segment serves biologic, generic, and pharmaceutical drug companies. The Contract-Manufactured Products segment is involved in the design, manufacture, and automated assembly of devices used in surgical, diagnostic, ophthalmic, injectable, and other drug delivery systems, as well as consumer products. The company serves pharmaceutical, diagnostic, and medical device companies. It sells and distributes its products through its sales force and distribution network, contract sales agents, and regional distributors. West Pharmaceutical Services, Inc. was founded in 1923 and is headquartered in Exton, Pennsylvania.
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