Critical Survey: Landauer (LDR) & Meridian Bioscience (VIVO)

Landauer (NYSE: LDR) and Meridian Bioscience (NASDAQ:VIVO) are both small-cap healthcare companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.

Valuation and Earnings

This table compares Landauer and Meridian Bioscience’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Landauer N/A N/A N/A $1.92 35.00
Meridian Bioscience $200.77 million 3.22 $21.55 million $0.51 30.00

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

Volatility and Risk

Landauer has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500. Comparatively, Meridian Bioscience has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.

Institutional & Insider Ownership

79.6% of Landauer shares are held by institutional investors. Comparatively, 86.8% of Meridian Bioscience shares are held by institutional investors. 6.6% of Landauer shares are held by insiders. Comparatively, 2.7% of Meridian Bioscience shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Landauer pays an annual dividend of $1.10 per share and has a dividend yield of 1.6%. Meridian Bioscience pays an annual dividend of $0.50 per share and has a dividend yield of 3.3%. Landauer pays out 57.3% of its earnings in the form of 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Landauer 16.55% 96.20% 13.62%
Meridian Bioscience 10.74% 17.03% 11.51%

Analyst Recommendations

This is a summary of current ratings and target prices for Landauer and Meridian Bioscience, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Landauer 0 1 0 0 2.00
Meridian Bioscience 1 3 0 0 1.75

Meridian Bioscience has a consensus target price of $11.50, suggesting a potential downside of 24.84%. Given Meridian Bioscience’s higher probable upside, analysts clearly believe Meridian Bioscience is more favorable than Landauer.

Summary

Landauer beats Meridian Bioscience on 9 of the 13 factors compared between the two stocks.

Landauer Company Profile

Landauer, Inc. is a provider of technical and analytical services to determine occupational and environmental radiation exposure. The Company is a provider of outsourced medical physics services, and a provider of radiology related medical products. The Company operates through three segments: Radiation Measurement, Medical Physics and Medical Products. The Company provides radiation dosimetry services to hospitals, medical and dental offices, universities, national laboratories, nuclear facilities and other industries. Medical physics services are provided through the Company’s Landauer Medical Physics (LMP) division. The Company uses LMP as a platform to expand into the medical physics services market, serving domestic hospitals, radiation therapy centers and imaging centers. The Company’s Medical Products segment provides medical consumable accessories used in radiology, radiation therapy and image guided surgery procedures.

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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