Quidel Corporation (QDEL) versus Meridian Bioscience (VIVO) Critical Analysis

Quidel Corporation (NASDAQ: QDEL) and Meridian Bioscience (NASDAQ:VIVO) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitabiliy, valuation, risk, institutional ownership and earnings.

Dividends

Meridian Bioscience pays an annual dividend of $0.50 per share and has a dividend yield of 3.2%. Quidel Corporation does not pay a dividend. Meridian Bioscience pays out 70.4% of its earnings in the form of a dividend.

Insider & Institutional Ownership

89.6% of Quidel Corporation shares are held by institutional investors. Comparatively, 86.4% of Meridian Bioscience shares are held by institutional investors. 22.0% of Quidel Corporation shares are held by insiders. Comparatively, 2.3% of Meridian Bioscience shares are held 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.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Quidel Corporation and Meridian Bioscience, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Quidel Corporation 0 3 1 0 2.25
Meridian Bioscience 1 4 0 0 1.80

Quidel Corporation presently has a consensus price target of $24.67, indicating a potential downside of 4.17%. Meridian Bioscience has a consensus price target of $14.33, indicating a potential downside of 7.53%. Given Quidel Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe Quidel Corporation is more favorable than Meridian Bioscience.

Risk & Volatility

Quidel Corporation has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, Meridian Bioscience has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Quidel Corporation 1.83% 1.94% 1.02%
Meridian Bioscience 15.02% 18.02% 12.00%

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Quidel Corporation $214.97 million 3.98 $39.80 million $0.10 257.43
Meridian Bioscience $198.60 million 3.29 $55.72 million $0.71 21.83

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

Summary

Quidel Corporation beats Meridian Bioscience on 10 of the 16 factors compared between the two stocks.

Quidel Corporation Company Profile

Quidel Corporation is engaged in the development, manufacturing and marketing of diagnostic testing solutions. These diagnostic testing solutions are separated into four product categories: immunoassays, molecular assays, virology and specialty products. The Company sells its products directly to end users and distributors, in each case, for professional use in physician offices, hospitals, clinical laboratories, reference laboratories, universities, retail clinics, pharmacies and wellness screening centers. Its diagnostic solutions aid in the detection and diagnosis of critical diseases and other medical conditions, including infectious diseases, women’s health, gastrointestinal diseases, autoimmune diseases, bone health and thyroid diseases. The Company provides diagnostic testing solutions under various brand names, including Quidel, QuickVue, QuickVue+, MicroVue, FreshCells, D3 FastPoint, Super E-Mix, ELVIS, Sofia, Quidel Molecular, Amplivue, Lyra and Thyretain.

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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