Contrasting Thermo Fisher Scientific (TMO) and PerkinElmer (PKI)
Thermo Fisher Scientific (NYSE: TMO) and PerkinElmer (NYSE:PKI) are both mid-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, profitability, valuation and risk.
Volatility & Risk
Thermo Fisher Scientific has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, PerkinElmer has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Thermo Fisher Scientific and PerkinElmer, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Thermo Fisher Scientific||0||1||14||0||2.93|
Thermo Fisher Scientific currently has a consensus price target of $201.46, suggesting a potential upside of 5.18%. PerkinElmer has a consensus price target of $67.42, suggesting a potential downside of 2.96%. Given Thermo Fisher Scientific’s stronger consensus rating and higher probable upside, equities analysts plainly believe Thermo Fisher Scientific is more favorable than PerkinElmer.
Earnings and Valuation
This table compares Thermo Fisher Scientific and PerkinElmer’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Thermo Fisher Scientific||$19.20 billion||3.89||$4.81 billion||$5.74||33.37|
|PerkinElmer||$2.14 billion||3.58||$416.05 million||$3.31||20.99|
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.
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||11.80%||15.97%||7.48%|
Thermo Fisher Scientific pays an annual dividend of $0.60 per share and has a dividend yield of 0.3%. PerkinElmer pays an annual dividend of $0.28 per share and has a dividend yield of 0.4%. Thermo Fisher Scientific pays out 10.5% of its earnings in the form of a dividend. PerkinElmer pays out 8.5% 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. PerkinElmer is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
83.4% of Thermo Fisher Scientific shares are held by institutional investors. Comparatively, 91.5% of PerkinElmer shares are held by institutional investors. 0.5% of Thermo Fisher Scientific shares are held by company insiders. Comparatively, 2.2% of PerkinElmer shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Thermo Fisher Scientific beats PerkinElmer on 11 of the 16 factors compared between the two stocks.
Thermo Fisher Scientific Company Profile
Thermo Fisher Scientific Inc. develops, manufactures and sells a range of products. The Company provides analytical instruments, equipment, reagents and consumables, software and services for research, manufacturing, analysis, discovery and diagnostics. It operates through four segments: Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics, and Laboratory Products and Services. The Life Sciences Solutions segment provides a portfolio of reagents, instruments and consumables. The Analytical Instruments segment provides a range of instruments, consumables, software and services. The Specialty Diagnostics segment offers a range of diagnostic test kits, reagents, culture media, instruments and associated products. The Laboratory Products and Services segment offers controlled temperature technologies products, growth protection and separation products, and water and laboratory products.
PerkinElmer Company Profile
PerkinElmer, Inc. is a provider of products, services and solutions to the diagnostics, research, environmental, industrial and laboratory services markets. The Company operates through two segments: Discovery & Analytical Solutions and Diagnostics. The Discovery & Analytical Solutions segment serves the environmental, food, industrial, life sciences research and laboratory services markets. It provides analytical instrumentation for the industrial market, which includes the chemical, electronics, energy, lubricant, petrochemical and polymer industries. Its products include AAnalyst, Altus, Aquamatic, Avio, AxION, Clarus, DairyGuard, AlphaLISA, AlphaPlex, AlphaScreen, Alpha SureFire, Cell carrier and cell::explorer. The Diagnostics segment is focused on reproductive health, emerging market diagnostics and applied genomics. Its products include AutoDELFIA, BACS-on-Beads, Bioo Scientific, BoBs, Datalytix, Dexela, Dexela CMOS FPDs, Evolution, ViaCord, and Zephyr.
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