Escalon Medical (OTCMKTS:ESMC – Get Free Report) and Merit Medical Systems (NASDAQ:MMSI – Get Free Report) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.
Profitability
This table compares Escalon Medical and Merit Medical Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Escalon Medical | -0.85% | -7.73% | -2.14% |
| Merit Medical Systems | 8.02% | 14.27% | 8.23% |
Risk & Volatility
Escalon Medical has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500. Comparatively, Merit Medical Systems has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Escalon Medical | $12.05 million | 0.10 | $110,000.00 | ($0.02) | -7.75 |
| Merit Medical Systems | $1.36 billion | 3.68 | $120.36 million | $1.95 | 43.12 |
Merit Medical Systems has higher revenue and earnings than Escalon Medical. Escalon Medical 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.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Escalon Medical and Merit Medical Systems, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Escalon Medical | 0 | 0 | 0 | 0 | 0.00 |
| Merit Medical Systems | 0 | 2 | 8 | 0 | 2.80 |
Merit Medical Systems has a consensus price target of $104.50, indicating a potential upside of 24.27%. Given Merit Medical Systems’ stronger consensus rating and higher possible upside, analysts plainly believe Merit Medical Systems is more favorable than Escalon Medical.
Insider and Institutional Ownership
99.7% of Merit Medical Systems shares are owned by institutional investors. 1.9% of Escalon Medical shares are owned by company insiders. Comparatively, 3.2% of Merit Medical Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Merit Medical Systems beats Escalon Medical on 14 of the 14 factors compared between the two stocks.
About Escalon Medical
Escalon Medical Corp. engages in the development, manufacturing, marketing, and distribution of medical devices and pharmaceuticals in the area of ophthalmology in the United States and internationally. It offers A-Scan, which provides information about the internal structure of the eye; B-Scan, a diagnostic tool that supplies information to physicians where the media within the eye are cloudy or opaque; UBM, a high frequency/high resolution ultrasound device, which provides detailed information about the anterior segment of the eye; and Pachymeter that measures the thickness of cornea. The company also provides Ispan Intraocular Gases, such as C3F8 and SF6 that are used by vitreoretinal surgeons as a temporary tamponade in detached retina surgery; and AXIS Image management system for managing ophthalmic diagnostic images through the web browser from various devices. In addition, it markets disposable surgical packs used in vitreoretinal surgery, including packs that aid surgeons in the process of injecting and extracting silicone oil. Further, the company engages in the manufacturing and distribution of patented disposable universal gas kit, which delivers the gas from the canister to the patient. It sells its products to medical institutions through independent sales representatives, network of distributors, and internal sales employees. Escalon Medical Corp. was incorporated in 1987 and is headquartered in Wayne, Pennsylvania.
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.
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