DarioHealth (NASDAQ:DRIO – Get Rating) and Merit Medical Systems (NASDAQ:MMSI – Get Rating) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.
Profitability
This table compares DarioHealth and Merit Medical Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DarioHealth | -224.88% | -64.99% | -48.76% |
| Merit Medical Systems | 6.47% | 14.28% | 9.50% |
Analyst Recommendations
This is a breakdown of current ratings and target prices for DarioHealth and Merit Medical Systems, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DarioHealth | 0 | 0 | 4 | 0 | 3.00 |
| Merit Medical Systems | 0 | 1 | 5 | 0 | 2.83 |
Institutional & Insider Ownership
35.8% of DarioHealth shares are held by institutional investors. Comparatively, 95.4% of Merit Medical Systems shares are held by institutional investors. 9.4% of DarioHealth shares are held by insiders. Comparatively, 3.8% 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 company will outperform the market over the long term.
Earnings and Valuation
This table compares DarioHealth and Merit Medical Systems’ top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DarioHealth | $27.66 million | 3.77 | -$62.19 million | ($2.63) | -1.53 |
| Merit Medical Systems | $1.15 billion | 3.46 | $74.52 million | $1.30 | 53.51 |
Merit Medical Systems has higher revenue and earnings than DarioHealth. DarioHealth is trading at a lower price-to-earnings ratio than Merit Medical Systems, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
DarioHealth has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500. Comparatively, Merit Medical Systems has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.
Summary
Merit Medical Systems beats DarioHealth on 8 of the 13 factors compared between the two stocks.
About DarioHealth
DarioHealth Corp. is a digital therapeutics company, which engages in the research, development, and sale of pharmaceutical products. It offers a monitoring device, mobile application, and data services for diabetes management. The firm solutions include MyDario, Daro Engage, and Dario Intelligence. The company was founded by Oren Fuerst, Shoshana Friedman, David Weintraub, Dov Oppenheim, and Shilo Ben Zeev on August 11, 2011 and is headquartered in New York, NY.
About Merit Medical Systems
Merit Medical Systems, Inc. engages in the manufacture and marketing of proprietary disposable medical devices. It operates through the Cardiovascular and Endoscopy segments. The Cardiovascular segment consists of peripheral intervention, cardiac intervention, interventional oncology and spine, and cardiovascular and critical care product groups. The Endoscopy segment integrates non-vascular stent technology with balloon dilators, inflation devices, guide wires, procedure kits, and other devices that are used by gastroenterologists, endoscopists, pulmonologists, and thoracic and general surgeons. The company was founded by Fred P. Lampropoulos, Darla Gill, Kent W. Stanger, and William Padilla in July 1987 and is headquartered in South Jordan, UT.
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