Fuse Medical (OTCMKTS:FZMD) and Owens & Minor (NYSE:OMI) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, risk, valuation and profitability.

Insider and Institutional Ownership

89.0% of Owens & Minor shares are held by institutional investors. 41.1% of Fuse Medical shares are held by insiders. Comparatively, 1.7% of Owens & Minor shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

Fuse Medical has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500. Comparatively, Owens & Minor has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Fuse Medical and Owens & Minor, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fuse Medical 0 0 0 0 N/A
Owens & Minor 3 3 0 0 1.50

Owens & Minor has a consensus target price of $13.58, indicating a potential upside of 49.27%. Given Owens & Minor’s higher probable upside, analysts plainly believe Owens & Minor is more favorable than Fuse Medical.

Profitability

This table compares Fuse Medical and Owens & Minor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fuse Medical -6.94% N/A -12.82%
Owens & Minor -1.57% 9.50% 2.32%

Valuation & Earnings

This table compares Fuse Medical and Owens & Minor’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fuse Medical $26.40 million 1.45 $690,000.00 N/A N/A
Owens & Minor $9.32 billion 0.06 $72.79 million $1.61 5.65

Owens & Minor has higher revenue and earnings than Fuse Medical.

Dividends

Owens & Minor pays an annual dividend of $1.04 per share and has a dividend yield of 11.4%. Fuse Medical does not pay a dividend. Owens & Minor pays out 64.6% of its earnings in the form of a dividend. Owens & Minor has raised its dividend for 19 consecutive years.

Summary

Owens & Minor beats Fuse Medical on 10 of the 13 factors compared between the two stocks.

Fuse Medical Company Profile

Fuse Medical, Inc. distributes medical devices in the United States. It offers orthopedic implants, including internal and external fixation products; upper and lower extremity plating and total joint reconstruction implants; soft tissue fixation and augmentation for sports medicine procedures; full spinal implants for trauma, degenerative disc disease, and deformity indications; and osteo-biologics and regenerative tissue which include human allografts, substitute bone materials, tendons, and regenerative tissues and fluids. The company serves hospitals, medical facilities, and sub-distributors. Fuse Medical, Inc. is based in Richardson, Texas.

Owens & Minor Company Profile

Owens & Minor, Inc., together with its subsidiaries, operates as a healthcare services company in the United States, the United Kingdom, Ireland, France, Germany, and other European countries. It operates through three segments: Domestic, International, and Proprietary Products. The company offers supply chain assistance to the providers of healthcare services; and the manufacturers of healthcare products, supplies, and devices. Its service portfolio consists of procurement, inventory management, delivery, and sourcing of products for the healthcare market; and portfolio of medical and surgical supplies comprises branded products purchased from manufacturers and proprietary private-label products. The company also provides supplier management, analytics, inventory management, outsourced resource management, clinical supply management, and business process consulting services; warehousing and transportation services, such as storage, controlled-substance handling, cold-chain, emergency and export delivery, and pick and pack services; and other services, including order-to-cash, re-labeling, customer, and returns management services. In addition, it provides custom procedure trays; and sourcing services comprising manufacturing capacity management, container load optimization, customs compliance assurance, and others. The company serves hospitals, integrated healthcare systems, group purchasing organizations, the U.S. federal government, and biotechnology industries, as well as manufacturers of life-science and medical devices and supplies, including pharmaceuticals. It delivers its services through internal fleet, common carrier, or parcel services, as well as cold-chain delivery trucks. Owens & Minor, Inc. was founded in 1882 and is headquartered in Mechanicsville, Virginia.

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