Thermo Fisher Scientific (NYSE:TMO) and PerkinElmer (NYSE:PKI) are both large-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.
Earnings & Valuation
This table compares Thermo Fisher Scientific and PerkinElmer's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Thermo Fisher Scientific | $25.54 billion | 5.91 | $3.70 billion | $12.35 | 30.95 |
| PerkinElmer | $2.88 billion | 3.87 | $227.56 million | $4.10 | 24.41 |
Thermo Fisher Scientific has higher revenue and earnings than PerkinElmer. PerkinElmer 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.
Profitability
This table compares Thermo Fisher Scientific and PerkinElmer's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Thermo Fisher Scientific | 14.31% | 17.25% | 8.66% |
| PerkinElmer | 7.82% | 16.52% | 7.03% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Thermo Fisher Scientific and PerkinElmer, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Thermo Fisher Scientific | 0 | 3 | 10 | 0 | 2.77 |
| PerkinElmer | 0 | 10 | 5 | 0 | 2.33 |
Thermo Fisher Scientific currently has a consensus target price of $353.50, suggesting a potential downside of 7.53%. PerkinElmer has a consensus target price of $83.7333, suggesting a potential downside of 16.34%. Given Thermo Fisher Scientific's stronger consensus rating and higher probable upside, research analysts plainly believe Thermo Fisher Scientific is more favorable than PerkinElmer.
Volatility & Risk
Thermo Fisher Scientific has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, PerkinElmer has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500.
Institutional and Insider Ownership
87.7% of Thermo Fisher Scientific shares are held by institutional investors. Comparatively, 93.5% of PerkinElmer shares are held by institutional investors. 0.4% of Thermo Fisher Scientific shares are held by insiders. Comparatively, 0.6% of PerkinElmer shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Dividends
Thermo Fisher Scientific pays an annual dividend of $0.88 per share and has a dividend yield of 0.2%. PerkinElmer pays an annual dividend of $0.28 per share and has a dividend yield of 0.3%. Thermo Fisher Scientific pays out 7.1% of its earnings in the form of a dividend. PerkinElmer pays out 6.8% 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 2 consecutive years. PerkinElmer is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Thermo Fisher Scientific beats PerkinElmer on 11 of the 17 factors compared between the two stocks.
