Critical Review: Kestra Medical Technologies (NASDAQ:KMTS) & Merit Medical Systems (NASDAQ:MMSI)

Merit Medical Systems (NASDAQ:MMSI – Get Free Report) and Kestra Medical Technologies (NASDAQ:KMTS – Get Free Report) are both healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.

Analyst Ratings

This is a summary of current ratings and recommmendations for Merit Medical Systems and Kestra Medical Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Merit Medical Systems 0 5 8 0 2.62
Kestra Medical Technologies 1 2 5 0 2.50

Merit Medical Systems currently has a consensus price target of $105.55, suggesting a potential upside of 20.61%. Kestra Medical Technologies has a consensus price target of $29.00, suggesting a potential downside of 1.74%. Given Merit Medical Systems’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Merit Medical Systems is more favorable than Kestra Medical Technologies.

Profitability

This table compares Merit Medical Systems and Kestra Medical Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Merit Medical Systems 9.94% 14.12% 8.37%
Kestra Medical Technologies -140.43% -63.83% -44.76%

Earnings & Valuation

This table compares Merit Medical Systems and Kestra Medical Technologies”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 3.46 $128.49 million $2.66 32.90
Kestra Medical Technologies $95.13 million 18.48 -$131.61 million ($2.67) -11.05

Merit Medical Systems has higher revenue and earnings than Kestra Medical Technologies. Kestra Medical Technologies 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.

Insider and Institutional Ownership

99.7% of Merit Medical Systems shares are held by institutional investors. 0.7% of Merit Medical Systems shares are held by company insiders. Comparatively, 5.3% of Kestra Medical Technologies shares are held by company 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.

Volatility and Risk

Merit Medical Systems has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Kestra Medical Technologies has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500.

Summary

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

About Merit Medical Systems

(Get Free Report)

Merit Medical Systems develops, manufactures and markets medical devices used in diagnostic and interventional procedures. Its products support clinicians in areas including cardiology, radiology, oncology and endoscopy. The company’s portfolio includes devices and accessories for vascular access, diagnostic and therapeutic procedures, drainage, biopsy and embolization. Merit serves hospitals, clinics and other healthcare providers through direct sales and distribution channels. Founded in 1987 and headquartered in South Jordan, Utah, Merit Medical serves customers in the United States and internationally.

About Kestra Medical Technologies

(Get Free Report)

Kestra Medical Technologies is a medical technology company focused on wearable solutions for people at risk of sudden cardiac arrest. Its products combine cardiac monitoring, treatment technology and digital services intended to support patients and their care teams. The company’s flagship product, the ASSURE wearable cardioverter defibrillator, continuously monitors a patient’s heart rhythm and can deliver a treatment shock if it detects a life-threatening arrhythmia. The system also provides alerts and supports remote sharing of patient data with clinicians.

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