Avitar (OTCMKTS:AVTI) versus Merit Medical Systems (NASDAQ:MMSI) Head to Head Analysis

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

Insider and Institutional Ownership

99.7% of Merit Medical Systems shares are owned by institutional investors. 0.7% of Merit Medical Systems shares are owned by company insiders. Comparatively, 7.4% of Avitar shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Merit Medical Systems has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Avitar has a beta of -0.07, indicating that its share price is 107% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Merit Medical Systems and Avitar, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Merit Medical Systems	1	2	8	0	2.64
Avitar	0	0	0	0	0.00

Merit Medical Systems presently has a consensus price target of $92.80, indicating a potential upside of 37.09%. Given Merit Medical Systems’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Merit Medical Systems is more favorable than Avitar.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Merit Medical Systems	9.03%	13.54%	7.94%
Avitar	N/A	N/A	N/A

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Merit Medical Systems	$1.54 billion	2.62	$128.49 million	$2.31	29.31
Avitar	N/A	N/A	N/A	N/A	N/A

Merit Medical Systems has higher revenue and earnings than Avitar.

Summary

Merit Medical Systems beats Avitar on 9 of the 10 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 Avitar

Avitar, Inc. is a holding company which through its subsidiaries designs, develops, manufactures, and markets diagnostic test products and proprietary hydrophilic polyurethane foam disposables for medical, diagnostics, dental, and consumer applications in the United States. It offers ORALscreen 4 and ORALscreen DRUGOMETER, the oral fluid-based onsite assay systems, for detecting drugs of abuse, such as opiates, including heroin, morphine, codeine, and synthetic opiates comprising oxycocone-oxycontin, percoset, and hydrocodone-vicodin; cocaine such as crack; marijuana; and methamphetamines, including meth and ecstasy. The company also provides foam disposable products including medical-grade hydrophilic polyurethane foam disposables such as wound dressings comprising Hydrasorb, a wound dressing product for exudating wounds; and various custom foam products comprising a sinus dressing and a device used by astronauts for relieving ear pressure while in a pressurized space suit. In addition, it develops specialty wound dressings for the cardiac catheter lab market, as well as the Illizarov Dressing used for dressing external bone fixators in orthopedic procedures. The company markets its products and services to employers, diagnostic test distributors, medical supply companies, governmental agencies, schools, and corporations through direct sales force and strategic partners, as well as through a network of distributors. Avitar, Inc. was founded in 1986 and is based in Canton, Massachusetts with Additional office in Calgary, Canada.