Cantel Medical Corp. (CMD) and Merit Medical Systems (MMSI) Financial Analysis
Cantel Medical Corp. (NYSE: CMD) and Merit Medical Systems (NASDAQ:MMSI) are both mid-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitabiliy, risk and earnings.
Institutional and Insider Ownership
83.7% of Cantel Medical Corp. shares are held by institutional investors. Comparatively, 92.1% of Merit Medical Systems shares are held by institutional investors. 14.9% of Cantel Medical Corp. shares are held by insiders. Comparatively, 5.6% of Merit Medical Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a summary of recent ratings and target prices for Cantel Medical Corp. and Merit Medical Systems, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cantel Medical Corp.||0||3||1||0||2.25|
|Merit Medical Systems||0||1||7||0||2.88|
Cantel Medical Corp. currently has a consensus price target of $96.00, indicating a potential upside of 25.07%. Merit Medical Systems has a consensus price target of $39.59, indicating a potential downside of 4.20%. Given Cantel Medical Corp.’s higher possible upside, analysts plainly believe Cantel Medical Corp. is more favorable than Merit Medical Systems.
Valuation & Earnings
This table compares Cantel Medical Corp. and Merit Medical Systems’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cantel Medical Corp.||$741.62 million||4.30||$141.91 million||$1.69||45.42|
|Merit Medical Systems||$672.31 million||3.07||$102.74 million||$0.70||59.04|
Cantel Medical Corp. has higher revenue and earnings than Merit Medical Systems. Cantel Medical Corp. 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.
Volatility and Risk
Cantel Medical Corp. has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, Merit Medical Systems has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.
This table compares Cantel Medical Corp. and Merit Medical Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cantel Medical Corp.||9.50%||17.75%||11.32%|
|Merit Medical Systems||4.87%||9.78%||5.72%|
Cantel Medical Corp. pays an annual dividend of $0.14 per share and has a dividend yield of 0.2%. Merit Medical Systems does not pay a dividend. Cantel Medical Corp. pays out 8.3% of its earnings in the form of a dividend.
Cantel Medical Corp. beats Merit Medical Systems on 11 of the 16 factors compared between the two stocks.
Cantel Medical Corp. Company Profile
Cantel Medical Corp. is a provider of infection prevention products and services in the healthcare market. The Company’s operating segments include Endoscopy; Water Purification and Filtration; Healthcare Disposables, and Dialysis. Its Endoscopy segment includes medical device reprocessing systems, disinfectants, detergents and other supplies. The Company’s Water Purification and Filtration segment includes water purification equipment and services, filtration and separation products, and disinfectant, sterilization and decontamination products and services. Its Healthcare Disposables segment includes single-use, infection prevention and control healthcare products. The Company’s Dialysis segment includes medical device reprocessing systems, sterilants/disinfectants, dialysate concentrates and other supplies for renal dialysis. The Company offers a range of filters utilizing hollow fiber membrane technology.
Merit Medical Systems Company Profile
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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