Illumina (NASDAQ: ILMN) and Hologic (NASDAQ:HOLX) are both large-cap healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, analyst recommendations, valuation and profitability.

Valuation & Earnings

This table compares Illumina and Hologic’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Illumina $2.40 billion 14.77 $462.64 million $5.30 45.77
Hologic $3.06 billion 3.93 $755.50 million $2.64 16.50

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

Institutional and Insider Ownership

91.6% of Illumina shares are owned by institutional investors. Comparatively, 97.7% of Hologic shares are owned by institutional investors. 0.9% of Illumina shares are owned by company insiders. Comparatively, 0.8% of Hologic shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Illumina and Hologic’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Illumina 30.34% 19.42% 10.74%
Hologic 24.70% 21.69% 7.20%

Risk and Volatility

Illumina has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Hologic has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Illumina and Hologic, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Illumina 1 8 11 0 2.50
Hologic 0 2 11 1 2.93

Illumina currently has a consensus target price of $213.71, indicating a potential downside of 11.91%. Hologic has a consensus target price of $48.79, indicating a potential upside of 12.00%. Given Hologic’s stronger consensus rating and higher possible upside, analysts clearly believe Hologic is more favorable than Illumina.

Summary

Hologic beats Illumina on 8 of the 14 factors compared between the two stocks.

Illumina Company Profile

Illumina, Inc. (Illumina) is a provider of sequencing- and array-based solutions for genetic analysis. The Company operates through two segments: Core Illumina and the consolidated variable interest entities (VIEs), which include the activities of GRAIL, Inc. (GRAIL) and Helix Holdings I, LLC (Helix). Core Illumina consists of its core operations. Core Illumina’s products and services serve customers in the research, clinical and applied markets, and enable the adoption of a range of genomic solutions. The Company’s portfolio of integrated systems, consumables and analysis tools addresses the range of genomic complexity, price points, and throughput, enabling customers to select the solution for their research or clinical challenge. The Company provides reproductive-health solutions, including noninvasive prenatal testing (NIPT), preimplantation genetic screening and diagnosis, and neonatal and genetic health testing.

Hologic Company Profile

Hologic, Inc. is a developer, manufacturer and supplier of diagnostics products, medical imaging systems and surgical products with an emphasis on women’s health. The Company operates through four segments: Diagnostics, Breast Health, GYN Surgical and Skeletal Health. The diagnostics products include Aptima family of assays, ThinPrep system, the Rapid Fetal Fibronectin Test and Procleix blood screening assays. It offers viral load assays for the quantitation of Hepatitis B Virus (HBV), Hepatitis C Virus (HCV) and Human Immunodeficiency Virus-1 (HIV-1). The Breast Health products include breast imaging and related products and accessories, including digital mammography systems, computer-aided detection (CAD) and breast biopsy guidance systems. The GYN Surgical products include NovaSure Endometrial Ablation System and MyoSure Hysteroscopic Tissue Removal System. The Skeletal Health segment offers Discovery and Horizon X-ray bone densitometers and mini C-arm imaging systems.

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