MusclePharm (OTCMKTS:MSLP) versus Merck KGaA (OTCMKTS:MKKGY) Financial Survey

MusclePharm (OTCMKTS:MSLP) and Merck KGaA (OTCMKTS:MKKGY) are both consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, profitability, analyst recommendations, institutional ownership and dividends.

Valuation and Earnings

This table compares MusclePharm and Merck KGaA”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MusclePharm	$50.04 million	0.00	-$12.87 million	($0.58)	N/A
Merck KGaA	$22.72 billion	0.80	$3.06 billion	$1.62	17.41

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

Profitability

This table compares MusclePharm and Merck KGaA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MusclePharm	-38.51%	N/A	-169.56%
Merck KGaA	12.89%	10.41%	5.88%

Institutional & Insider Ownership

15.5% of MusclePharm shares are owned by institutional investors. Comparatively, 0.1% of Merck KGaA shares are owned by institutional investors. 60.7% of MusclePharm shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

MusclePharm has a beta of -0.07, suggesting that its stock price is 107% less volatile than the S&P 500. Comparatively, Merck KGaA has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for MusclePharm and Merck KGaA, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MusclePharm	0	0	0	0	0.00
Merck KGaA	0	0	1	0	3.00

Given MusclePharm’s higher possible upside, research analysts plainly believe MusclePharm is more favorable than Merck KGaA.

Summary

Merck KGaA beats MusclePharm on 10 of the 13 factors compared between the two stocks.

About MusclePharm

MusclePharm Corporation develops, manufactures, markets, and distributes sports nutrition products and nutritional supplements in the United States and internationally. The company offers a range of performance powders, capsules, tablets, gels, and on-the-go ready to eat snacks. Its MusclePharm brand product portfolio includes combat protein powder and combat crunch protein bars; and essential supplements, such as a BCAA, creatine, glutamine, carnitine, CLA, fish oil, multi-vitamin, and other products. The company also provides FitMiss branded sports nutrition products, which are formulated primarily for the female body to support women in the areas of weight management, lean muscle mass, body composition, and general health and wellness; and functional energy beverages under the Combat Energy and FitMiss Energy brands. It sells its products to various athletes and fitness enthusiasts. The company was incorporated in 2006 and is based in Las Vegas, Nevada.

About Merck KGaA

Merck KGaA operates as a science and technology company in Germany. It operates through Life Science, Healthcare, and Electronics segments. The company’s Life Science segment offers tools, chemicals, and equipment for academic labs, biotech, and pharmaceutical manufacturers, as well as industrial sector. This segment provides drug manufacturers with process development expertise and technologies, such as continuous bioprocessing; testing kits and services; reagents and services; testing solutions that analyze air, water, and soil; and testing and tools, as well as products that help test nutritional value and identify quality inconsistencies. Its Healthcare segment discovers, develops, manufacturers, and markets prescription drugs and biopharmaceuticals for the treatment of oncology, neurology and immunology, fertility, endocrinology, as well as cardiovascular, diabetes, thyroid disorders, and multiple sclerosis; general medicines; and injection device and disease monitoring software. The Electronics segment supplies materials for the semiconductor and display industries and surface design, such as delivery systems and services, as well as surface solutions, including cosmetics, effect pigments, and functional solutions. In addition, it has in-licensing agreement with Debiopharm International SA for developing and commercializing drug candidates for the treatment of head and neck cancer; Jiangsu Hengrui Pharmaceuticals Co. Ltd. for developing, manufacturing, and commercializing drug candidates for the treatment of metastatic colorectal cancer; and Abbisko Therapeutics Co. Ltd. for developing and commercializing of drug candidates for the treatment of tenosynovial giant cell tumor, as well as license and collaboration agreement with Merck KGaA to discover two targeted protein degraders against critical oncogenic proteins. The company was founded in 1668 and is headquartered in Darmstadt, Germany. Merck KGaA operates as a subsidiary of E. Merck KGaA.