Edwards Lifesciences Corporation (NYSE: EW) and PerkinElmer (NYSE:PKI) are both mid-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, earnings, institutional ownership and risk.

Valuation & Earnings

This table compares Edwards Lifesciences Corporation and PerkinElmer’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Edwards Lifesciences Corporation $3.23 billion 7.30 $1.05 billion $3.30 33.85
PerkinElmer $2.14 billion 3.55 $416.05 million $3.31 20.84

Edwards Lifesciences Corporation has higher revenue and earnings than PerkinElmer. PerkinElmer is trading at a lower price-to-earnings ratio than Edwards Lifesciences Corporation, indicating that it is currently the more affordable of the two stocks.

Dividends

PerkinElmer pays an annual dividend of $0.28 per share and has a dividend yield of 0.4%. Edwards Lifesciences Corporation does not pay a dividend. PerkinElmer pays out 8.5% of its earnings in the form of a dividend.

Institutional and Insider Ownership

82.1% of Edwards Lifesciences Corporation shares are owned by institutional investors. Comparatively, 91.5% of PerkinElmer shares are owned by institutional investors. 2.1% of Edwards Lifesciences Corporation shares are owned by company insiders. Comparatively, 2.2% of PerkinElmer shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Edwards Lifesciences Corporation and PerkinElmer, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Edwards Lifesciences Corporation 0 5 14 1 2.80
PerkinElmer 2 7 4 0 2.15

Edwards Lifesciences Corporation presently has a consensus target price of $120.05, indicating a potential upside of 7.46%. PerkinElmer has a consensus target price of $66.91, indicating a potential downside of 3.02%. Given Edwards Lifesciences Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Edwards Lifesciences Corporation is more favorable than PerkinElmer.

Volatility & Risk

Edwards Lifesciences Corporation has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, PerkinElmer has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.

Profitability

This table compares Edwards Lifesciences Corporation and PerkinElmer’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Edwards Lifesciences Corporation 22.16% 27.17% 15.91%
PerkinElmer 16.80% 13.44% 6.85%

Summary

Edwards Lifesciences Corporation beats PerkinElmer on 12 of the 17 factors compared between the two stocks.

Edwards Lifesciences Corporation Company Profile

Edwards Lifesciences Corporation is a manufacturer of heart valve systems and repair products used to replace or repair a patient’s diseased or defective heart valve. The Company is engaged in patient-focused innovations for structural heart disease and critical care monitoring. Its segments include United States, Europe, Japan and Rest of World. Its products are categorized into three areas: Transcatheter Heart Valve Therapy, Surgical Heart Valve Therapy and Critical Care. It also develops hemodynamic monitoring systems that are used to measure a patient’s cardiovascular function in the hospital setting. It is developing products, such as the Edwards SAPIEN 3 Ultra System and Edwards SAPIEN XT transcatheter heart valve, among others. Its Transcatheter Heart Valve Therapy and Surgical Heart Valve Therapy products are manufactured in the United States, Singapore and Switzerland. Critical Care products are manufactured in its facilities located in Puerto Rico and the Dominican Republic.

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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