IDEXX Laboratories (NASDAQ:IDXX) and Meridian Bioscience (NASDAQ:VIVO) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
IDEXX Laboratories 14.50% -703.80% 21.21%
Meridian Bioscience 11.49% 16.97% 11.62%

Risk & Volatility

IDEXX Laboratories has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, Meridian Bioscience has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IDEXX Laboratories $1.97 billion 10.81 $263.14 million $3.28 74.95
Meridian Bioscience $200.77 million 3.17 $21.55 million $0.67 22.39

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

Analyst Recommendations

This is a summary of recent recommendations for IDEXX Laboratories and Meridian Bioscience, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IDEXX Laboratories 1 0 5 0 2.67
Meridian Bioscience 0 1 0 0 2.00

IDEXX Laboratories currently has a consensus target price of $238.00, suggesting a potential downside of 3.19%. Meridian Bioscience has a consensus target price of $16.00, suggesting a potential upside of 6.67%. Given Meridian Bioscience’s higher possible upside, analysts plainly believe Meridian Bioscience is more favorable than IDEXX Laboratories.

Institutional and Insider Ownership

91.2% of IDEXX Laboratories shares are owned by institutional investors. Comparatively, 88.0% of Meridian Bioscience shares are owned by institutional investors. 2.6% of IDEXX Laboratories shares are owned by insiders. Comparatively, 2.7% of Meridian Bioscience shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Meridian Bioscience pays an annual dividend of $0.50 per share and has a dividend yield of 3.3%. IDEXX Laboratories does not pay a dividend. Meridian Bioscience pays out 74.6% of its earnings in the form of a dividend.

Summary

IDEXX Laboratories beats Meridian Bioscience on 11 of the 16 factors compared between the two stocks.

About IDEXX Laboratories

IDEXX Laboratories, Inc., together with its subsidiaries, develops, manufactures, and distributes products and services primarily for the companion animal veterinary, livestock and poultry, dairy, and water testing markets worldwide. It operates through Companion Animal Group; Water Quality Products; Livestock, Poultry and Dairy; and Other segments. The company provides point-of-care veterinary diagnostic products, including instruments, consumables, and rapid assay test kits; veterinary reference laboratory diagnostic and consulting services; practice management and diagnostic imaging systems and services for veterinarians; and biological materials testing, and laboratory animal diagnostic instruments and services for biomedical research community. It also offers diagnostic and health-monitoring products for livestock, poultry, and dairy markets; products that test water for various microbiological contaminants; and point-of-care electrolytes and blood gas analyzers that are used in the human point-of-care medical diagnostics market. The company markets its products through marketing, customer service, sales, and technical service groups, as well as through independent distributors and other resellers. IDEXX Laboratories, Inc. was founded in 1983 and is headquartered in Westbrook, Maine.

About Meridian Bioscience

Meridian Bioscience, Inc., a life science company, develops, manufactures, distributes, and sells diagnostic test kits primarily for various gastrointestinal and viral diseases, respiratory and parasitic infectious diseases, and elevated blood lead levels worldwide. The company operates through Diagnostics and Life Science segments. The Diagnostics segment offers testing platforms and technologies, including isothermal DNA amplification under the illumigene brand; rapid immunoassays, a single-use immunoassays under the TRU, ImmunoCard, and ImmunoCard STAT! brand names; enzyme-linked immunoassays under the PREMIER brand; and anodic stripping voltammetry, an electrical chemical sensor platform for quantitative determination under the LeadCare brand. This segment's products are primarily used in the detection of infectious diseases caused by various bacteria, viruses, parasites, and pathogens. Its products consists of C. difficile, a causative agent for antibiotic-associated diarrhea from a hospital-acquired infection; foodborne products, such as tests for Enterohemorrhagic E. coli and Campylobacter jejuni; H. pylori to detect stomach ulcers; respiratory products; and women's health and sexually transmitted diseases Group B Streptococcu, Chlamydia trachomatis, Neisseria gonorrhea, and Herpes Simplex Virus Type 1 and Type 2. This segment sells its products through direct sales force and independent distributors to acute care hospitals, reference laboratories, outpatient clinics, and physician office laboratories. The Life Science segment offers bulk antigens, antibodies, PCR/qPCR reagents, nucleotides, competent cells, and bioresearch reagents used by researchers, agri-bio companies, and other diagnostic manufacturing companies. The company was founded in 1976 and is headquartered in Cincinnati, Ohio.

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