Analyzing Merit Medical Systems (NASDAQ:MMSI) and Universal Media Group (OTCMKTS:UMGP)

Merit Medical Systems (NASDAQ:MMSI) and Universal Media Group (OTCMKTS:UMGP) 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, profitability, earnings, institutional ownership, valuation and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Merit Medical Systems	9.05%	15.61%	8.38%
Universal Media Group	N/A	N/A	N/A

Volatility & Risk

Merit Medical Systems has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Universal Media Group has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500.

Insider and Institutional Ownership

99.7% of Merit Medical Systems shares are held by institutional investors. 3.7% of Merit Medical Systems shares are held by company 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.

Valuation and Earnings

This table compares Merit Medical Systems and Universal Media Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Merit Medical Systems	$1.26 billion	4.75	$94.41 million	$2.04	50.24
Universal Media Group	$30,000.00	28.79	-$350,000.00	($0.01)	-3.00

Merit Medical Systems has higher revenue and earnings than Universal Media Group. Universal Media Group 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.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Merit Medical Systems and Universal Media Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Merit Medical Systems	0	2	9	1	2.92
Universal Media Group	0	0	0	0	0.00

Merit Medical Systems currently has a consensus price target of $103.36, suggesting a potential upside of 0.86%. Given Merit Medical Systems’ stronger consensus rating and higher probable upside, research analysts plainly believe Merit Medical Systems is more favorable than Universal Media Group.

Summary

Merit Medical Systems beats Universal Media Group on 13 of the 14 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 Universal Media Group

Universal Media Group Inc., a media company, produces and distributes media content worldwide. It produces On The Mike, a TV show that primarily include celebrity interviews, music concerts, and other events. The company was formerly known as Dalton Industries Inc. and changed its name to Universal Media Group Inc. in January 2016. Universal Media Group Inc. was founded in 1971 and is based in Boca Raton, Florida.