Analyzing Merit Medical Systems (NASDAQ:MMSI) and CONMED (NYSE:CNMD)

CONMED (NYSE:CNMD) 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 institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.

Earnings and Valuation

This table compares CONMED and Merit Medical Systems”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CONMED	$1.37 billion	0.78	$47.06 million	$1.51	23.04
Merit Medical Systems	$1.52 billion	2.66	$128.49 million	$2.12	31.93

Merit Medical Systems has higher revenue and earnings than CONMED. CONMED 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 CONMED and Merit Medical Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CONMED	3.42%	14.23%	6.17%
Merit Medical Systems	8.48%	13.82%	8.04%

Volatility and Risk

CONMED has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Merit Medical Systems has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500.

Insider and Institutional Ownership

99.7% of Merit Medical Systems shares are owned by institutional investors. 3.1% of CONMED 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 endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for CONMED and Merit Medical Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CONMED	1	7	0	0	1.88
Merit Medical Systems	0	3	7	0	2.70

CONMED currently has a consensus price target of $50.17, indicating a potential upside of 44.22%. Merit Medical Systems has a consensus price target of $101.25, indicating a potential upside of 49.56%. Given Merit Medical Systems’ stronger consensus rating and higher possible upside, analysts plainly believe Merit Medical Systems is more favorable than CONMED.

Summary

Merit Medical Systems beats CONMED on 12 of the 14 factors compared between the two stocks.

About CONMED

CONMED Corporation, a medical technology company, develops, manufactures, and sells surgical devices and related equipment for surgical procedures worldwide. The company offers orthopedic surgery products, including BioBrace, TruShot with Y-Knot All-In-One Soft Tissue Fixation System, Y-knot All-Suture Anchors, and Agro Knotless Suture Anchors, which provide clinical solutions to orthopedic surgeons for the augmentation and repair of soft tissue injuries, as well as provides supporting products that enable surgeons to perform minimally invasive sports medicine surgeries. It markets orthopedic surgery products under the Hall, CONMED Linvatec, Concept, and Shutt brands. The company also provides battery-powered and autoclavable bone power tool systems for use in orthopedic, arthroscopic, oral/maxillofacial, podiatric, spinal, and cardiothoracic surgeries under Hall surgical brand name. In addition, it offers general surgery products, including clinical insufflation systems under AirSeal brand; smoke removal devices under Buffalo Filter brand; endomechanical products, such as tissue retrieval bags, trocars, suction irrigation devices, graspers, scissors, and dissectors used in minimally invasive surgeries; and electrosurgical solution comprising monopolar and bipolar generators, argon beam coagulation generators, handpieces, smoke management systems and other accessories. Further, the company provides endoscopic technologies, including therapeutic and diagnostic products for use in gastroenterology procedures, and products for the treatment of diseases of the dilatation, hemostasis, biliary, structure management, and infection prevention and patient monitoring, including ECG and EEG electrodes, and cardiac defibrillation pads. It markets its products directly to hospitals, surgery centers, and other healthcare institutions, as well as through medical specialty distributors. CONMED Corporation was incorporated in 1970 and is headquartered in Largo, Florida.

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.