Pacific Biosciences of California (NASDAQ:PACB) and Mettler-Toledo International (NYSE:MTD) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.
Risk and Volatility
Pacific Biosciences of California has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500. Comparatively, Mettler-Toledo International has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.
Insider and Institutional Ownership
84.9% of Pacific Biosciences of California shares are owned by institutional investors. Comparatively, 93.2% of Mettler-Toledo International shares are owned by institutional investors. 11.6% of Pacific Biosciences of California shares are owned by insiders. Comparatively, 3.2% of Mettler-Toledo International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings and price targets for Pacific Biosciences of California and Mettler-Toledo International, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Pacific Biosciences of California | 0 | 1 | 3 | 0 | 2.75 |
Mettler-Toledo International | 4 | 7 | 1 | 0 | 1.75 |
Pacific Biosciences of California currently has a consensus target price of $43.50, suggesting a potential upside of 26.67%. Mettler-Toledo International has a consensus target price of $868.0833, suggesting a potential downside of 22.67%. Given Pacific Biosciences of California's stronger consensus rating and higher probable upside, analysts clearly believe Pacific Biosciences of California is more favorable than Mettler-Toledo International.
Valuation and Earnings
This table compares Pacific Biosciences of California and Mettler-Toledo International's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Pacific Biosciences of California | $90.89 million | 68.09 | $-84,130,000.00 | ($0.55) | -62.44 |
Mettler-Toledo International | $3.01 billion | 8.73 | $561.11 million | $22.77 | 49.30 |
Mettler-Toledo International has higher revenue and earnings than Pacific Biosciences of California. Pacific Biosciences of California is trading at a lower price-to-earnings ratio than Mettler-Toledo International, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Pacific Biosciences of California and Mettler-Toledo International's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Pacific Biosciences of California | -57.25% | -101.30% | -32.33% |
Mettler-Toledo International | 19.36% | 144.89% | 21.11% |
Summary
Mettler-Toledo International beats Pacific Biosciences of California on 8 of the 14 factors compared between the two stocks.