Thermo Fisher Scientific (NYSE:TMO) and Luminex (NASDAQ:LMNX) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.
Institutional and Insider Ownership
87.2% of Thermo Fisher Scientific shares are owned by institutional investors. Comparatively, 88.1% of Luminex shares are owned by institutional investors. 0.4% of Thermo Fisher Scientific shares are owned by company insiders. Comparatively, 9.4% of Luminex shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Thermo Fisher Scientific and Luminex's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Thermo Fisher Scientific | 17.12% | 21.35% | 10.55% |
Luminex | 4.60% | 3.75% | 2.73% |
Earnings and Valuation
This table compares Thermo Fisher Scientific and Luminex's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Thermo Fisher Scientific | $25.54 billion | 7.38 | $3.70 billion | $12.35 | 38.78 |
Luminex | $334.64 million | 4.66 | $-3,840,000.00 | ($0.21) | -156.90 |
Thermo Fisher Scientific has higher revenue and earnings than Luminex. Luminex is trading at a lower price-to-earnings ratio than Thermo Fisher Scientific, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations and price targets for Thermo Fisher Scientific and Luminex, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Thermo Fisher Scientific | 0 | 3 | 17 | 0 | 2.85 |
Luminex | 0 | 0 | 1 | 0 | 3.00 |
Thermo Fisher Scientific currently has a consensus target price of $526.3684, suggesting a potential upside of 9.92%. Luminex has a consensus target price of $38.00, suggesting a potential upside of 15.33%. Given Luminex's stronger consensus rating and higher probable upside, analysts clearly believe Luminex is more favorable than Thermo Fisher Scientific.
Volatility & Risk
Thermo Fisher Scientific has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Luminex has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.
Dividends
Thermo Fisher Scientific pays an annual dividend of $1.04 per share and has a dividend yield of 0.2%. Luminex pays an annual dividend of $0.40 per share and has a dividend yield of 1.2%. Thermo Fisher Scientific pays out 8.4% of its earnings in the form of a dividend. Luminex pays out -190.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Thermo Fisher Scientific has raised its dividend for 3 consecutive years and Luminex has raised its dividend for 1 consecutive years. Luminex is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Thermo Fisher Scientific beats Luminex on 10 of the 17 factors compared between the two stocks.