The Medicines (NASDAQ: MDCO) and Merus Labs International (NASDAQ:MSLI) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, profitabiliy, dividends, earnings and analyst recommendations.

Earnings & Valuation

This table compares The Medicines and Merus Labs International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
The Medicines $141.74 million 18.38 -$306.00 million ($1.90) -19.29
Merus Labs International N/A N/A N/A ($0.08) -16.25

Merus Labs International has higher revenue, but lower earnings than The Medicines. The Medicines is trading at a lower price-to-earnings ratio than Merus Labs International, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares The Medicines and Merus Labs International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Medicines -91.25% -19.09% -7.60%
Merus Labs International -5.18% -2.51% -1.32%

Analyst Ratings

This is a summary of recent recommendations and price targets for The Medicines and Merus Labs International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Medicines 0 2 8 0 2.80
Merus Labs International 0 6 0 0 2.00

The Medicines currently has a consensus price target of $55.00, suggesting a potential upside of 50.07%. Merus Labs International has a consensus price target of $1.35, suggesting a potential upside of 3.85%. Given The Medicines’ stronger consensus rating and higher possible upside, equities analysts plainly believe The Medicines is more favorable than Merus Labs International.

Insider & Institutional Ownership

19.7% of Merus Labs International shares are held by institutional investors. 7.9% of The Medicines shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

The Medicines has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, Merus Labs International has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500.

Summary

Merus Labs International beats The Medicines on 6 of the 11 factors compared between the two stocks.

About The Medicines

The Medicines Company is a global biopharmaceutical company. The Company is focused on advancing the treatment of acute and intensive care patients through the delivery of medicines to the hospital marketplace around the world. It markets Angiomax (bivalirudin), Ionsys (fentanyl iontophoretic transdermal system), Minocin (minocycline) for injection and Orbactiv (oritavancin). It also has a pipeline of products in development, including Carbavance, inclisiran and MDCO-700. Carbavance is used for the treatment of hospitalized patients with gram-negative bacterial infections. Inclisiran is used for the treatment of hypercholesterolemia. MDCO-700 includes sedative-hypnotic, which is used to induce and maintain sedation for procedural care and general anesthesia for surgical care. In addition to these products and products in development, it has a portfolio of generic drugs.

About Merus Labs International

Merus Labs International Inc. is a specialty pharmaceutical company. The Company is engaged in the acquisition and licensing of branded prescription pharmaceutical products. The Company’s products include Elantan, Isoket, Deponit, Sintrom, Emselex/Enablex, Surgestone, Provames, Speciafoldine, Tredemine, Salagen, Estraderm MX and Vancocin. Elantan are tablets or capsules that belong to a group of medicines called organic nitrates. Isoket belongs to a group of medicines called organic nitrates. Deponit belongs to a group of medicines called nitrates. Sintrom is an anticoagulant indicated to treat and prevent thromboembolic diseases. Emselex/Enablex is used in adults to treat overactive bladder syndrome. Surgestone is used to treat women with menstrual irregularities due to ovulation disorder, dysmenorrhea and premenstrual syndrome. Provames is used as hormone replacement therapy in postmenopausal women with symptoms of estrogen deficiency.

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