Head to Head Analysis: Merit Medical Systems (NASDAQ:MMSI) & Olympus (OTCMKTS:OCPNY)

Merit Medical Systems (NASDAQ:MMSI) and Olympus (OTCMKTS:OCPNY) are both healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Risk & Volatility

Merit Medical Systems has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Olympus has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.

Profitability

This table compares Merit Medical Systems and Olympus’ 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%
Olympus	13.80%	24.30%	9.30%

Insider & Institutional Ownership

99.7% of Merit Medical Systems shares are owned by institutional investors. Comparatively, 0.0% of Olympus shares are owned by institutional investors. 0.7% of Merit Medical Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Merit Medical Systems and Olympus, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Merit Medical Systems	0	5	8	0	2.62
Olympus	0	0	1	0	3.00

Merit Medical Systems presently has a consensus target price of $105.55, suggesting a potential upside of 22.34%. Given Merit Medical Systems’ higher probable upside, equities research analysts clearly believe Merit Medical Systems is more favorable than Olympus.

Valuation and Earnings

This table compares Merit Medical Systems and Olympus”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Merit Medical Systems	$1.52 billion	3.41	$128.49 million	$2.66	32.43
Olympus	$7.74 billion	2.99	$1.03 billion	$0.82	21.95

Olympus has higher revenue and earnings than Merit Medical Systems. Olympus 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.

About Merit Medical Systems

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 Olympus

Olympus Corporation is a Japan-based medical technology company focused on developing and supplying equipment and services for medical procedures. Its products include gastrointestinal endoscopes and related systems, surgical endoscopes, and endotherapy devices used in diagnosis and treatment. The company’s roots date to 1919, when it was established in Japan as Takachiho Seisakusho to produce microscopes. Over time, Olympus became known for optical products, but it has since exited its camera and scientific solutions businesses to concentrate on medical technology.