Head to Head Comparison: Penumbra (NYSE:PEN) vs. Merit Medical Systems (NASDAQ:MMSI)

Merit Medical Systems (NASDAQ:MMSI) and Penumbra (NYSE:PEN) are both mid-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Insider and Institutional Ownership

99.7% of Merit Medical Systems shares are owned by institutional investors. Comparatively, 88.9% of Penumbra shares are owned by institutional investors. 3.7% of Merit Medical Systems shares are owned by insiders. Comparatively, 5.0% of Penumbra shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Merit Medical Systems has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Penumbra has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Merit Medical Systems	9.02%	15.47%	8.79%
Penumbra	1.26%	8.39%	6.36%

Analyst Recommendations

This is a summary of current recommendations and price targets for Merit Medical Systems and Penumbra, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Merit Medical Systems	0	1	9	1	3.00
Penumbra	0	5	6	0	2.55

Merit Medical Systems currently has a consensus price target of $98.20, indicating a potential upside of 2.49%. Penumbra has a consensus price target of $199.50, indicating a potential downside of 0.39%. Given Merit Medical Systems’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Merit Medical Systems is more favorable than Penumbra.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Merit Medical Systems	$1.30 billion	4.28	$94.41 million	$1.74	55.06
Penumbra	$1.13 billion	6.85	$90.95 million	$2.37	84.51

Merit Medical Systems has higher revenue and earnings than Penumbra. Merit Medical Systems is trading at a lower price-to-earnings ratio than Penumbra, indicating that it is currently the more affordable of the two stocks.

Summary

Merit Medical Systems beats Penumbra on 11 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 Penumbra

Penumbra, Inc., together with its subsidiaries, designs, develops, manufactures, and markets medical devices in the United States and internationally. The company offers peripheral products, including the Indigo System for power aspiration of thrombus in the body; Lightning Flash, a mechanical thrombectomy system; Lightning Bolt 7, an arterial thrombectomy system; and CAT RX. It also provides access products, including guide catheters and the Penumbra distal delivery catheters under the Neuron, Neuron MAX Select, BENCHMARK, BMX96, BMX81, DDC, SENDit, and PX SLIM brands; Penumbra System, an integrated mechanical thrombectomy system comprising reperfusion catheters and separators, the 3D Revascularization Device, aspiration tubing, and aspiration pump under the Penumbra RED, JET, ACE, Max, 3D Revascularization Device, and Penumbra ENGINE brands; and neuro embolization coiling systems that includes the Penumbra Coil 400, a detachable coil that provides an alternative for the treatment of aneurysms and other complex lesions, as well as Penumbra SMART COIL, a detachable coil to treat patients with a wide range of neurovascular lesions; and POD400 and PAC400 brands. In addition, the company provides peripheral embolization products, such as Ruby Coil System consisting of detachable coils for peripheral applications; Penumbra LANTERN Delivery Microcatheter, a low-profile microcatheter with a high-flow lumen; POD (Penumbra Occlusion Device) System, a single device solution; and Packing Coil, a complementary device for use in other peripheral embolization products. Further, it offers an immersive 3D computer-based technology platform under the real immersive system brand; and neurosurgical tools, such as Artemis Neuro Evacuation Device for surgical removal of fluid and tissue from the ventricles and cerebrum. The company sells its products through direct sales organizations and distributors. Penumbra, Inc. was incorporated in 2004 and is headquartered in Alameda, California.