Merit Medical Systems (NASDAQ:MMSI – Get Free Report) and Bausch + Lomb (NYSE:BLCO – Get Free Report) are both mid-cap healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.
Institutional & Insider Ownership
99.7% of Merit Medical Systems shares are held by institutional investors. Comparatively, 11.1% of Bausch + Lomb shares are held by institutional investors. 0.7% of Merit Medical Systems shares are held by company insiders. Comparatively, 1.5% of Bausch + Lomb shares are held 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 breakdown of recent ratings and target prices for Merit Medical Systems and Bausch + Lomb, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Merit Medical Systems | 0 | 3 | 8 | 1 | 2.83 |
| Bausch + Lomb | 1 | 8 | 6 | 0 | 2.33 |
Profitability
This table compares Merit Medical Systems and Bausch + Lomb’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Merit Medical Systems | 9.22% | 13.75% | 8.10% |
| Bausch + Lomb | -3.21% | 4.14% | 1.93% |
Risk & Volatility
Merit Medical Systems has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500. Comparatively, Bausch + Lomb has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500.
Valuation & Earnings
This table compares Merit Medical Systems and Bausch + Lomb”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Merit Medical Systems | $1.52 billion | 3.37 | $128.49 million | $2.42 | 35.33 |
| Bausch + Lomb | $5.32 billion | 1.13 | -$360.00 million | ($0.48) | -34.94 |
Merit Medical Systems has higher earnings, but lower revenue than Bausch + Lomb. Bausch + Lomb 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.
Summary
Merit Medical Systems beats Bausch + Lomb on 12 of the 15 factors compared between the two stocks.
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.
About Bausch + Lomb
Bausch + Lomb Corporation operates as an eye health company in the United States, Puerto Rico, China, France, Japan, Germany, the United Kingdom, Canada, Russia, Spain, Italy, Mexico, Poland, South Korea, and internationally. It operates in three segments: Vision Care, Pharmaceuticals, and Surgical. The Vision Care segment provides contact lens that covers the spectrum of wearing modalities, including daily disposable and frequently replaced contact lenses; and contact lens care products comprising over-the-counter eye drops, eye vitamins, and mineral supplements that address various conditions, such as eye allergies, conjunctivitis, dry eye, and redness relief. Its Pharmaceuticals segment offers proprietary and generic pharmaceutical products for post-operative treatments, as well as for the treatment of glaucoma, eye inflammation, ocular hypertension, dry eyes, and retinal diseases. The Surgical segment provides medical device equipment, consumables, and technologies for the treatment of cataracts, corneal, vitreous, and retinal eye conditions; and intraocular lenses and delivery systems, phacoemulsification equipment, and other surgical instruments and devices for cataract surgery. The company sells its products and services through direct sales forces and independent distributors. Bausch + Lomb Corporation was founded in 1853 and is headquartered in Vaughan, Canada. Bausch + Lomb Corporation is a subsidiary of Bausch Health Companies Inc.
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