Terumo (OTCMKTS:TRUMY – Get Free Report) and Utah Medical Products (NASDAQ:UTMD – Get Free Report) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, earnings, profitability, risk, analyst recommendations and dividends.
Dividends
Terumo pays an annual dividend of $0.13 per share and has a dividend yield of 0.9%. Utah Medical Products pays an annual dividend of $1.24 per share and has a dividend yield of 2.2%. Terumo pays out 21.7% of its earnings in the form of a dividend. Utah Medical Products pays out 35.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Utah Medical Products has increased its dividend for 3 consecutive years. Utah Medical Products is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Terumo and Utah Medical Products, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Terumo | 0 | 0 | 0 | 0 | 0.00 |
| Utah Medical Products | 1 | 0 | 0 | 0 | 1.00 |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Terumo | $6.80 billion | 3.17 | $772.05 million | $0.60 | 24.27 |
| Utah Medical Products | $38.63 million | 4.69 | $13.87 million | $3.54 | 15.96 |
Terumo has higher revenue and earnings than Utah Medical Products. Utah Medical Products is trading at a lower price-to-earnings ratio than Terumo, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
69.6% of Utah Medical Products shares are owned by institutional investors. 7.4% of Utah Medical Products shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Terumo and Utah Medical Products’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Terumo | 12.35% | 9.39% | 7.08% |
| Utah Medical Products | 30.08% | 9.89% | 9.53% |
Volatility and Risk
Terumo has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, Utah Medical Products has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500.
Summary
Utah Medical Products beats Terumo on 10 of the 15 factors compared between the two stocks.
About Terumo
Terumo Corporation engages in the manufacture and sale of medical products and equipment in Japan, Europe, China, the United States, Asia, and internationally. The company operates through three segments: Cardiac and Vascular Company, Medical Care Solutions Company, and Blood and Cell Technologies Company. The Cardiac and Vascular Company segment offers angiographic guidewires, angiographic catheters, introducer sheaths, vascular closure devices, PTCA balloon catheters, coronary stents, self-expanding peripheral stents, intravascular ultrasound systems, imaging catheters, and others; coils, stents, and intrasaccular devices for treating cerebral aneurysm; embolization systems, aspiration catheters, and clot retrievers for treating ischemic stroke and others; oxygenators, cardio-pulmonary bypass systems, and others; and artificial vascular and stent grafts. The Medical Care Solutions Company segment provides syringes, infusion pumps, syringe pumps, infusion lines, I.V. solutions, peritoneal dialysis fluids, pain management and nutritious food products, adhesion barriers, and others; blood glucose monitoring systems, disposable needles for pen-injector, insulin patch pumps, blood pressure monitors, digital thermometers, and others; and contract manufacturing of prefilled syringes, devices to pharmaceutical companies for use in drug kits, such as prefillable syringes, needles for pharmaceutical packaging business, and others. The Blood and Cell Technologies Company segment offers blood bags, component collection systems, automated blood processing systems, pathogen reduction systems, centrifugal apheresis systems, cell expansion systems, and others. The company was formerly known as Sekisen Ken-onki Corporation and changed its name to Terumo Corporation in October 1974. Terumo Corporation was incorporated in 1921 and is headquartered in Tokyo, Japan.
About Utah Medical Products
Utah Medical Products, Inc. develops, manufactures, and distributes medical devices for the healthcare industry worldwide. It offers fetal monitoring accessories, vacuum-assisted delivery systems, and other labor and delivery tools; DISPOSA-HOOD infant respiratory hoods; and DELTRAN PLUS blood pressure monitoring systems. It also provides GESCO, an umbilical vessel catheters, including DIALY-NATE disposable peritoneal dialysis sets; PALA-NATE silicone oral protection devices; URI-CATH urinary drainage systems; NUTRI-CATH\NUTRI-LOK feeding device; PICC-NATE, a percutaneous intraepithelial central venous catheter; MYELO-NATE lumbar sampling kits; HEMO-NATE disposable filters; and catheterization procedure tray of instruments and supplies. In addition, the company offers LETZ system to excise cervical intraepithelial neoplasia and other lower genital tract lesions; loop, ball, and needle electrodes; FILTRESSE evacuators; other specialty electrodes and supplies, and gynecologic tools; Femcare trocars, cannulae, laparoscopic instruments, and accessories; and EPITOME and OptiMicro electrosurgical devices. Further, it provides Filshie Clip female surgical contraception devices; PATHFINDER PLUS, an endoscopic irrigation devices; suprapubic catheterization; LIBERTY, an urinary incontinence treatment and control systems; ENDOCURETTE, a curette for uterine endometrial tissue sampling; TVUS/HSG-Cath to assess abnormal or dysfunctional uterine bleeding and other abnormalities of uterus; and LUMIN, a tool to manipulate the uterus in laparoscopic procedures. Additionally, it offers DELTRAN, a disposable pressure transducer; high-pressure and piezo-resistive transducer assemblies; and pressure monitoring accessories, components, and other molded parts. It serves neonatal intensive care units, labor and delivery departments, women's health centers in hospitals, outpatient clinics, and physician's offices. The company was incorporated in 1978 and is headquartered in Midvale, Utah.
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