Meridian Bioscience (NASDAQ: VIVO) and DexCom (NASDAQ:DXCM) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, institutional ownership, earnings, profitability and valuation.
Volatility and Risk
Meridian Bioscience has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, DexCom has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500.
86.8% of Meridian Bioscience shares are owned by institutional investors. 2.7% of Meridian Bioscience shares are owned by insiders. Comparatively, 1.7% of DexCom shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Meridian Bioscience and DexCom’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Meridian Bioscience||$200.77 million||3.22||$21.55 million||$0.51||30.00|
|DexCom||$573.30 million||8.60||-$65.60 million||($0.57)||-99.56|
Meridian Bioscience has higher earnings, but lower revenue than DexCom. DexCom is trading at a lower price-to-earnings ratio than Meridian Bioscience, indicating that it is currently the more affordable of the two stocks.
Meridian Bioscience pays an annual dividend of $0.50 per share and has a dividend yield of 3.3%. DexCom does not pay a dividend. Meridian Bioscience pays out 98.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Meridian Bioscience and DexCom’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and recommmendations for Meridian Bioscience and DexCom, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Meridian Bioscience presently has a consensus target price of $11.50, suggesting a potential downside of 24.84%. DexCom has a consensus target price of $71.15, suggesting a potential upside of 25.37%. Given DexCom’s stronger consensus rating and higher probable upside, analysts clearly believe DexCom is more favorable than Meridian Bioscience.
Meridian Bioscience beats DexCom on 10 of the 16 factors compared between the two stocks.
About Meridian Bioscience
Meridian Bioscience, Inc. is a life science company engaged in the development, manufacture, sale and distribution of diagnostic test kits for gastrointestinal, viral, respiratory and parasitic infectious diseases, and elevated blood lead levels, and the manufacture and distribution of bulk antigens, antibodies, polymerase chain reaction (PCR)/quantitative PCR (qPCR) reagents, nucleotides, competent cells and bioresearch reagents used by researchers and other diagnostic manufacturers. Its segments include Diagnostics and Life Science. The Diagnostics segment includes manufacturing operations in Cincinnati, and the sale and distribution of diagnostic test kits in the countries consisting of North, Central and South America; Europe, the Middle East and Africa (EMEA), and other countries outside of the Americas and EMEA. The Life Science segment consists of manufacturing operations in Memphis, Tennessee; Boca Raton, Florida; London, England; Luckenwalde, Germany, and Sydney, Australia.
Dexcom, Inc. (Dexcom) is a medical device company. The Company is focused on the design, development and commercialization of continuous glucose monitoring (CGM) systems for ambulatory use by people with diabetes and for use by healthcare providers. The Company’s products consist of DexCom G4 PLATINUM and DexCom G5 Mobile. The Company is commercializing its fifth generation CGM system. The Company’s markets DexCom G4 PLATINUM under a Conformite Europeenne Marking (CE Mark), in the European Union, Australia, New Zealand and the countries in Asia and Latin America, and in the United States with approval from the United States Food and Drug Administration (FDA). The DexCom G4 PLATINUM with Share remote monitoring system uses a wireless connection between a patient’s receiver and an application on the patient’s iPhone, iPod touch, or iPad to transmit glucose information to applications on the mobile devices of designated recipients (followers).
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