iRadimed (NASDAQ:IRMD) versus Thermo Fisher Scientific (NYSE:TMO) Head-To-Head Review

Thermo Fisher Scientific (NYSE:TMO) and iRadimed (NASDAQ:IRMD) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, earnings, valuation and dividends.

Volatility & Risk

Thermo Fisher Scientific has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, iRadimed has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Thermo Fisher Scientific and iRadimed, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Thermo Fisher Scientific	0	5	19	0	2.79
iRadimed	0	1	4	0	2.80

Thermo Fisher Scientific presently has a consensus price target of $601.65, suggesting a potential upside of 1.63%. iRadimed has a consensus price target of $87.33, suggesting a potential downside of 6.04%. Given Thermo Fisher Scientific’s higher probable upside, equities analysts clearly believe Thermo Fisher Scientific is more favorable than iRadimed.

Valuation and Earnings

This table compares Thermo Fisher Scientific and iRadimed”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	$43.74 billion	5.09	$6.34 billion	$17.31	34.20
iRadimed	$80.51 million	14.69	$19.23 million	$1.65	56.33

Thermo Fisher Scientific has higher revenue and earnings than iRadimed. Thermo Fisher Scientific is trading at a lower price-to-earnings ratio than iRadimed, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

89.2% of Thermo Fisher Scientific shares are owned by institutional investors. Comparatively, 92.3% of iRadimed shares are owned by institutional investors. 0.3% of Thermo Fisher Scientific shares are owned by company insiders. Comparatively, 36.8% of iRadimed shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Thermo Fisher Scientific pays an annual dividend of $1.72 per share and has a dividend yield of 0.3%. iRadimed pays an annual dividend of $0.68 per share and has a dividend yield of 0.7%. Thermo Fisher Scientific pays out 9.9% of its earnings in the form of a dividend. iRadimed pays out 41.2% 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 increased its dividend for 8 consecutive years and iRadimed has increased its dividend for 1 consecutive years.

Profitability

This table compares Thermo Fisher Scientific and iRadimed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Thermo Fisher Scientific	15.02%	16.97%	8.49%
iRadimed	26.61%	23.30%	20.62%

Summary

iRadimed beats Thermo Fisher Scientific on 10 of the 17 factors compared between the two stocks.

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.

About iRadimed

IRadimed Corp. engages in the development, manufacture, marketing, and distribution of Magnetic Resonance Imaging compatible medical devices. It also provides a non-magnetic Intravenous infusion pump system that is specifically designed for use during MRI procedures. The company was founded by Roger Susi in July 1992 and is headquartered in Winter Springs, FL.