Financial Review: Tenon Medical (NASDAQ:TNONW) and Merit Medical Systems (NASDAQ:MMSI)

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

Earnings and Valuation

This table compares Tenon Medical and Merit Medical Systems”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tenon Medical	$4.60 million	N/A	N/A	N/A	N/A
Merit Medical Systems	$1.52 billion	3.59	$128.49 million	$2.42	37.65

Merit Medical Systems has higher revenue and earnings than Tenon Medical.

Insider & Institutional Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tenon Medical	N/A	N/A	N/A
Merit Medical Systems	9.22%	13.75%	8.10%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Tenon Medical and Merit Medical Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tenon Medical	0	0	0	0	0.00
Merit Medical Systems	0	3	8	0	2.73

Merit Medical Systems has a consensus price target of $100.30, suggesting a potential upside of 10.09%. Given Merit Medical Systems’ stronger consensus rating and higher possible upside, analysts plainly believe Merit Medical Systems is more favorable than Tenon Medical.

Summary

Merit Medical Systems beats Tenon Medical on 9 of the 9 factors compared between the two stocks.

About Tenon Medical

Tenon Medical, Inc., a medical device company, engages in the development of surgical implant systems to treat severe lower back pain in the United States and Puerto Rico. The company offers CATAMARAN SI-Joint Fusion System to fuse sacroiliac joints (SI-Joints) to treat SI-Joint dysfunction that often causes severe lower back pain; and features fixation device that passes through the axial and sagittal planes of the ilium and sacrum, as well as stabilizes and transfixes the SI joints. Tenon Medical, Inc. was incorporated in 2012 and is headquartered in Los Gatos, California.

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.