Financial Analysis: Merit Medical Systems (NASDAQ:MMSI) versus Anika Therapeutics (NASDAQ:ANIK)

Merit Medical Systems (NASDAQ:MMSI) and Anika Therapeutics (NASDAQ:ANIK) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.

Volatility and Risk

Merit Medical Systems has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, Anika Therapeutics has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Merit Medical Systems and Anika Therapeutics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Merit Medical Systems 1 2 6 0 2.56
Anika Therapeutics 1 0 3 1 2.80

Merit Medical Systems presently has a consensus target price of $40.33, suggesting a potential downside of 1.41%. Anika Therapeutics has a consensus target price of $53.25, suggesting a potential upside of 28.38%. Given Anika Therapeutics’ stronger consensus rating and higher possible upside, analysts clearly believe Anika Therapeutics is more favorable than Merit Medical Systems.

Earnings & Valuation

This table compares Merit Medical Systems and Anika Therapeutics’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Merit Medical Systems $882.75 million 2.56 $42.02 million $1.69 24.21
Anika Therapeutics $105.56 million 5.61 $18.72 million $1.84 22.54

Merit Medical Systems has higher revenue and earnings than Anika Therapeutics. Anika Therapeutics 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Merit Medical Systems 1.94% 9.23% 5.12%
Anika Therapeutics 27.60% 11.59% 10.35%

Insider and Institutional Ownership

97.1% of Merit Medical Systems shares are held by institutional investors. Comparatively, 96.6% of Anika Therapeutics shares are held by institutional investors. 4.8% of Merit Medical Systems shares are held by insiders. Comparatively, 3.7% of Anika Therapeutics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Anika Therapeutics beats Merit Medical Systems on 8 of the 15 factors compared between the two stocks.

About Merit Medical Systems

Merit Medical Systems, Inc. manufactures and markets disposable medical devices for interventional, diagnostic, and therapeutic procedures in cardiology, radiology, oncology, critical care, and endoscopy. The company operates through Cardiovascular and Endoscopy segments. It provides peripheral intervention products, including access, angiography, intervention, and drainage and biopsy for diagnosis and treatment of diseases in peripheral vessels and organs; and cardiac intervention products, such as access, angiography, hemostasis, intervention, and electrophysiology and cardiac rhythm management products to treat various heart conditions. The company also offers cardiovascular and critical care products to treat patients with life-threatening diseases, protect healthcare providers from exposure to bloodborne pathogens, and provide medical devices. In addition, it provides interventional oncology and spine products comprising delivery system, embolotherapy, spine ablation, and vertebral compression fracture products to treat metastatic spinal tumors, liver cancer, uterine fibroids, benign prostatic hyperplasia, vertebral compression fractures, and arteriovenous malformations and hemostatic embolization, as well as breast cancer localization and guidance products for the treatment of breast cancer. Further, the company offers non-vascular stents to treat pulmonary and gastrointestinal diseases; dilation balloons to endoscopically dilate strictures; and kits and accessories for endoscopy and bronchoscopy procedures. Additionally, it provides coated tubes and wires; and microelectromechanical system sensor components. The company sells its products to hospitals and clinic-based physicians, technicians, and nurses through its direct sales force, distributors, original equipment manufacturer partners, or custom procedure tray manufacturers in the United States and internationally. Merit Medical Systems, Inc. was founded in 1987 and is headquartered in South Jordan, Utah.

About Anika Therapeutics

Anika Therapeutics, Inc., together with its subsidiaries, provides orthopedic medicines for patients with degenerative orthopedic diseases and traumatic conditions in the United States and internationally. The company develops, manufactures, and commercializes therapeutic products based on its proprietary hyaluronic acid (HA) technology. Its orthobiologics products comprise ORTHOVISC, ORTHOVISC mini, MONOVISC, and CINGAL for the treatment of osteoarthritis of the knee; HYALOFAST, a biodegradable support for human bone marrow mesenchymal stem cells used for cartilage regeneration and as an adjunct for microfracture surgery; HYALONECT, a resorbable knitted fabric mesh; HYALOSS MATRIX, HYAFF fibers used to mix blood/bone grafts to form a paste for bone regeneration; and HYALOGLIDE, an ACP gel used in tenolysis treatment. The company's dermal products include wound care products that comprise HYALOMATRIX and HYALOFILL for the treatment of complex wounds, such as burns and ulcers, and for use in connection with the regeneration of skin; and ELEVESS, an aesthetic dermatology product. Its surgical products comprise HYALOBARRIER, a post-operative adhesion barrier for use in the abdomino-pelvic area; MEROGEL, a woven fleece nasal packing; and MEROGEL INJECTABLE, a viscous hydrogel. The company also offers ophthalmic products, including injectable HA products that are used as viscoelastic agents in ophthalmic surgical procedures, such as cataract extraction and intraocular lens implantation; and veterinary products, which include HYVISC, an injectable HA product for the treatment of joint dysfunction in horses. The company was founded in 1983 and is headquartered in Bedford, Massachusetts.

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