Thermo Fisher Scientific (NYSE: TMO) and Thoratec (NASDAQ:THOR) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, earnings, risk, analyst recommendations, valuation and institutional ownership.
Thermo Fisher Scientific pays an annual dividend of $0.60 per share and has a dividend yield of 0.3%. Thoratec does not pay a dividend. Thermo Fisher Scientific pays out 10.7% of its earnings in the form of a dividend.
This table compares Thermo Fisher Scientific and Thoratec’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Thermo Fisher Scientific||10.64%||16.01%||7.35%|
Institutional & Insider Ownership
86.1% of Thermo Fisher Scientific shares are owned by institutional investors. 0.5% 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 will outperform the market over the long term.
Earnings & Valuation
This table compares Thermo Fisher Scientific and Thoratec’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Thermo Fisher Scientific||$20.92 billion||4.04||$2.23 billion||$5.60||37.61|
Thermo Fisher Scientific has higher revenue and earnings than Thoratec. Thoratec 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 is a summary of current recommendations and price targets for Thermo Fisher Scientific and Thoratec, as provided 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 $220.92, indicating a potential upside of 4.90%.
Thermo Fisher Scientific beats Thoratec on 9 of the 10 factors compared between the two stocks.
About Thermo Fisher Scientific
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.
Thoratec Corporation develops, manufactures and markets medical devices used for mechanical circulatory support for the treatment of heart failure patients. The Company’s products include ventricular assist devices (VADs), such as HeartMate II Left Ventricular Assist System (HeartMate II), HeartMate III Left Ventricular Assist System, Thoratec Paracorporeal Ventricular Assist Device (PVAD) and Thoratec Implantable Ventricular Assist Device (IVAD). For acute circulatory support, the Company’s product lines are CentriMag Acute Circulatory System (CentriMag) and for pediatric patients PediMag/PediVAS Acute Circulatory System (PediMag/PediVAS). HeartMate III, a centrifugal-flow, chronic, left ventricular assist system.
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