Veracyte (NASDAQ:VCYT – Get Free Report) and Thermo Fisher Scientific (NYSE:TMO – Get Free Report) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.
Earnings & Valuation
This table compares Veracyte and Thermo Fisher Scientific”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Veracyte | $445.76 million | 7.63 | $24.14 million | $0.38 | 113.29 |
| Thermo Fisher Scientific | $42.88 billion | 5.32 | $6.34 billion | $17.31 | 35.05 |
Insider and Institutional Ownership
89.2% of Thermo Fisher Scientific shares are owned by institutional investors. 1.4% of Veracyte shares are owned by insiders. Comparatively, 0.3% of Thermo Fisher Scientific shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings and price targets for Veracyte and Thermo Fisher Scientific, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Veracyte | 1 | 2 | 5 | 1 | 2.67 |
| Thermo Fisher Scientific | 0 | 3 | 19 | 1 | 2.91 |
Veracyte presently has a consensus target price of $46.14, indicating a potential upside of 7.18%. Thermo Fisher Scientific has a consensus target price of $625.47, indicating a potential upside of 3.09%. Given Veracyte’s higher probable upside, analysts clearly believe Veracyte is more favorable than Thermo Fisher Scientific.
Profitability
This table compares Veracyte and Thermo Fisher Scientific’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Veracyte | 6.12% | 7.23% | 6.58% |
| Thermo Fisher Scientific | 15.02% | 16.97% | 8.49% |
Volatility & Risk
Veracyte has a beta of 1.88, meaning that its stock price is 88% more volatile than the S&P 500. Comparatively, Thermo Fisher Scientific has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.
Summary
Thermo Fisher Scientific beats Veracyte on 9 of the 14 factors compared between the two stocks.
About Veracyte
Veracyte, Inc. engages in the research, development and commercialization of diagnostic products. The firm’s portfolio includes Afirma, Percepta, and Envisia. It intends to treat thyroid cancer, improve lung cancer screening, and clarify the diagnosis of idiopathic pulmonary fibrosis. The company was founded by Bonnie H. Anderson and Y. Douglas Dolginow on August 15, 2006 and is headquartered in South San Francisco, CA.
About Thermo Fisher Scientific
Thermo Fisher Scientific Inc. provides life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and biopharma services in the North America, Europe, Asia-Pacific, and internationally. The company's Life Sciences Solutions segment offers reagents, instruments, and consumables for biological and medical research, discovery, and production of drugs and vaccines, as well as diagnosis of infections and diseases; and solutions include biosciences, genetic sciences, and bio production to pharmaceutical, biotechnology, agricultural, clinical, healthcare, academic, and government markets. Its Analytical Instruments segment provides instruments, consumables, software, and services for pharmaceutical, biotechnology, academic, government, environmental, and other research and industrial markets, as well as clinical laboratories. The company's Specialty Diagnostics segment offers liquid, ready-to-use, and lyophilized immunodiagnostic reagent kits, as well as calibrators, controls, protein detection assays, and instruments; immunodiagnostics develops, manufactures and markets complete bloodtest systems to support the clinical diagnosis and monitoring of allergy, asthma and autoimmune diseases; dehydrated and prepared culture media, collection and transport systems, instrumentation, and consumables; human leukocyte antigen typing and testing for organ transplant market; and healthcare products. Its Laboratory Products and Biopharma Services segment provides laboratory products, research and safety market channel, and pharma services and clinical research. It offers products and services through a direct sales force, customer-service professionals, electronic commerce, and third-party distributors under Thermo Scientific; Applied Biosystems; Invitrogen; Fisher Scientific; Unity Lab Services; and Patheon and PPD. Thermo Fisher Scientific Inc. was founded in 1956 and is headquartered in Waltham, Massachusetts.
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