Head-To-Head Review: Merit Medical Systems (NASDAQ:MMSI) & Paragon 28 (NYSE:FNA)

Merit Medical Systems (NASDAQ:MMSIGet Rating) and Paragon 28 (NYSE:FNAGet Rating) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, institutional ownership, dividends, valuation and risk.

Analyst Ratings

This is a breakdown of recent ratings for Merit Medical Systems and Paragon 28, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Merit Medical Systems 0 1 5 0 2.83
Paragon 28 0 0 6 0 3.00

Merit Medical Systems presently has a consensus price target of $72.14, suggesting a potential upside of 24.45%. Paragon 28 has a consensus price target of $26.17, suggesting a potential upside of 49.18%. Given Paragon 28’s stronger consensus rating and higher possible upside, analysts plainly believe Paragon 28 is more favorable than Merit Medical Systems.

Earnings & Valuation

This table compares Merit Medical Systems and Paragon 28’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 $1.07 billion 3.06 $48.45 million $1.02 56.83
Paragon 28 $147.46 million 9.13 -$13.69 million ($0.44) -39.86

Merit Medical Systems has higher revenue and earnings than Paragon 28. Paragon 28 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.

Profitability

This table compares Merit Medical Systems and Paragon 28’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Merit Medical Systems 5.24% 13.74% 8.77%
Paragon 28 -18.54% -20.84% -13.54%

Insider & Institutional Ownership

94.5% of Merit Medical Systems shares are owned by institutional investors. Comparatively, 20.2% of Paragon 28 shares are owned by institutional investors. 3.8% of Merit Medical Systems shares are owned by insiders. Comparatively, 19.5% of Paragon 28 shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Merit Medical Systems beats Paragon 28 on 8 of the 13 factors compared between the two stocks.

About Merit Medical Systems

(Get Rating)

Merit Medical Systems, Inc. designs, develops, manufactures, and markets single-use medical products for interventional, diagnostic, and therapeutic procedures, primarily in cardiology, radiology, oncology, critical care, and endoscopy. The company operates in two segments, Cardiovascular and Endoscopy. It provides peripheral intervention products for the diagnosis and treatment of diseases in peripheral vessels and organs; 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. The company also offers custom procedural solutions that include critical care products, disinfection protection systems, syringes, manifold kits, and trays and packs; coated tubes and wires; and sensor components for microelectromechanical systems. In addition, it provides pulmonary products that consist of laser-cut tracheobronchial stents, over-the-wire and direct visualization delivery systems, and dilation balloons to endoscopically dilate strictures; gastroenterology products; and kits and accessories for endoscopy and bronchoscopy procedures. The company 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 in the United States and internationally. Merit Medical Systems, Inc. was incorporated in 1987 and is headquartered in South Jordan, Utah.

About Paragon 28

(Get Rating)

Paragon 28, Inc. designs, develops, distributes, and sells foot and ankle surgical systems in the United States and internationally. It offers plating systems, including gorilla plating systems, such as lisfranc, lapidus, lateral column, calcaneus slide, and naviculocuneiform (NC) fusion plating systems; baby gorilla plate-specific screws, navicular fracture plates, and 5th metatarsal hook plates; and silverback plating systems. The company also provides precision guide technology for various procedures consisting of fusion, a procedure to address bunion deformities that fuses two bones on the big toe; first tarsometatarsal arthrodesis; and metatarsal osteotomy for bunion correction, medial column beaming for charcot foot reconstruction, ankle fusion plating, and NC joint arthrodesis. In addition, it offers monster, mini monster, and joust beaming screw systems for use in bone reconstruction, osteotomy, arthrodesis, joint fusion, ligament fixation, fracture repair, and fracture fixation; and APEX 3D total ankle replacement systems; total talus spacers to replace the talus and bone in the ankle that connects the leg and foot. Further, the company provides bunion or hallux valgus correction systems, including nail systems phantom intramedullary nail systems for the treatment of severe hallux valgus; and various orthobiologics comprising bone wedges, grafts, demineralized bone matrices, bone void fillers, synthetic materials, amniotic products, and a biocompatible collagen matrix, as well as PRESERVE bone graft systems for homologous application. Additionally, it offers soft tissue fixation systems, titanium sprayed polyetheretherketone implants, nitinol staple systems, stabilization systems, and curved instruments. The company serves hospitals and ambulatory surgery centers through a network of sales representatives and stocking distributors. Paragon 28, Inc. was founded in 2010 and is headquartered in Englewood, Colorado.

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