Meridian Bioscience (VIVO) vs. Halyard Health (NYSE:HYH) Head to Head Comparison

Meridian Bioscience (NASDAQ: VIVO) and Halyard Health (NYSE:HYH) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Dividends

Meridian Bioscience pays an annual dividend of $0.50 per share and has a dividend yield of 3.3%. Halyard Health 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.

Risk and Volatility

Meridian Bioscience has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Halyard Health has a beta of 1.77, meaning that its stock price is 77% more volatile than the S&P 500.

Profitability

This table compares Meridian Bioscience and Halyard Health’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Meridian Bioscience 10.74% 17.03% 11.51%
Halyard Health 3.52% 8.65% 4.69%

Earnings & Valuation

This table compares Meridian Bioscience and Halyard Health’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Meridian Bioscience $200.77 million 3.17 $21.55 million $0.51 29.51
Halyard Health $1.59 billion 1.40 $39.80 million $1.19 39.97

Halyard Health has higher revenue and earnings than Meridian Bioscience. Meridian Bioscience is trading at a lower price-to-earnings ratio than Halyard Health, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for Meridian Bioscience and Halyard Health, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Meridian Bioscience 1 3 0 0 1.75
Halyard Health 0 1 3 0 2.75

Meridian Bioscience presently has a consensus target price of $11.50, suggesting a potential downside of 23.59%. Halyard Health has a consensus target price of $47.00, suggesting a potential downside of 1.18%. Given Halyard Health’s stronger consensus rating and higher probable upside, analysts clearly believe Halyard Health is more favorable than Meridian Bioscience.

Insider & Institutional Ownership

86.9% of Meridian Bioscience shares are held by institutional investors. Comparatively, 89.7% of Halyard Health shares are held by institutional investors. 2.7% of Meridian Bioscience shares are held by company insiders. Comparatively, 1.3% of Halyard Health shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Halyard Health beats Meridian Bioscience 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.

About Halyard Health

Halyard Health, Inc. is a medical technology company. The Company operates through two segments: Medical Devices and Surgical and Infection Prevention (S&IP). The Medical Devices segment provides a portfolio of product offerings focused on pain management, respiratory and digestive health. The S&IP segment provides healthcare supplies and solutions that target the prevention of healthcare-associated infections. The Company address healthcare needs, such as reducing the use of opioids, while helping patients move from surgery to recovery. The Medical Devices segment’s products include post-operative pain management solutions, minimally invasive interventional (or chronic) pain therapies, closed airway suction systems and enteral feeding tubes. The S&IP segment includes product offerings, such as sterilization wrap, surgical drapes and gowns, facial protection, protective apparel and medical exam gloves.

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