Hill-Rom Holdings (NYSE: HRC) and Meridian Bioscience (NASDAQ:VIVO) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitabiliy, institutional ownership, dividends, earnings and analyst recommendations.
Hill-Rom Holdings pays an annual dividend of $0.72 per share and has a dividend yield of 0.9%. Meridian Bioscience pays an annual dividend of $0.50 per share and has a dividend yield of 3.3%. Hill-Rom Holdings pays out 31.0% of its earnings in the form of a dividend. Meridian Bioscience pays out 70.4% 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. Meridian Bioscience has raised its dividend for 6 consecutive years. Meridian Bioscience is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Hill-Rom Holdings and Meridian Bioscience’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Hill-Rom Holdings and Meridian Bioscience’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Hill-Rom Holdings||$2.68 billion||2.01||$458.00 million||$2.32||35.26|
|Meridian Bioscience||$198.60 million||3.24||$55.72 million||$0.71||21.48|
Hill-Rom Holdings has higher revenue and earnings than Meridian Bioscience. Meridian Bioscience is trading at a lower price-to-earnings ratio than Hill-Rom Holdings, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
83.9% of Hill-Rom Holdings shares are owned by institutional investors. Comparatively, 86.4% of Meridian Bioscience shares are owned by institutional investors. 2.2% of Hill-Rom Holdings shares are owned by insiders. Comparatively, 2.3% of Meridian Bioscience shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Volatility & Risk
Hill-Rom Holdings has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500. Comparatively, Meridian Bioscience has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.
This is a summary of current ratings for Hill-Rom Holdings and Meridian Bioscience, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Hill-Rom Holdings currently has a consensus target price of $88.20, indicating a potential upside of 7.81%. Meridian Bioscience has a consensus target price of $14.33, indicating a potential downside of 6.01%. Given Hill-Rom Holdings’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Hill-Rom Holdings is more favorable than Meridian Bioscience.
Hill-Rom Holdings beats Meridian Bioscience on 10 of the 17 factors compared between the two stocks.
Hill-Rom Holdings Company Profile
Hill-Rom Holdings, Inc. is a global medical technology company. The Company operates through four segments: North America Patient Support Systems, International Patient Support Systems, Front Line Care and Surgical Solutions. The Company’s products and services include Patient Support Systems, Front Line Care and Surgical Solutions. The Company sells and rents its specialty frames and surfaces, and mobility solutions, as well as its clinical workflow solutions, in the United States and Canada through its North America Patient Support Systems segment, and in regions outside of the United States and Canada through its International Patient Support Systems segment. Its Front Line Care segment globally sells and rents respiratory care products, and sells medical diagnostic equipment and a diversified portfolio of devices that assess, diagnose, treat and manage a range of illnesses and diseases. Under its Surgical Solutions segment, the Company sells its surgical products globally.
Meridian Bioscience Company Profile
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.
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