Danaher (NYSE: DHR) and Fortive (NYSE:FTV) are both large-cap multi-sector conglomerates companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.
This table compares Danaher and Fortive’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Danaher pays an annual dividend of $0.64 per share and has a dividend yield of 0.6%. Fortive pays an annual dividend of $0.28 per share and has a dividend yield of 0.4%. Danaher pays out 15.9% of its earnings in the form of a dividend. Fortive pays out 9.7% 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.
This is a breakdown of recent recommendations and price targets for Danaher and Fortive, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Danaher presently has a consensus target price of $105.06, suggesting a potential upside of 3.77%. Fortive has a consensus target price of $80.00, suggesting a potential upside of 2.74%. Given Danaher’s stronger consensus rating and higher probable upside, equities analysts clearly believe Danaher is more favorable than Fortive.
Insider and Institutional Ownership
76.7% of Danaher shares are owned by institutional investors. Comparatively, 81.1% of Fortive shares are owned by institutional investors. 11.9% of Danaher shares are owned by company insiders. Comparatively, 12.1% of Fortive 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.
Risk and Volatility
Danaher has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, Fortive has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500.
Earnings and Valuation
This table compares Danaher and Fortive’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Danaher||$18.33 billion||3.86||$2.49 billion||$4.03||25.12|
|Fortive||$6.66 billion||4.08||$1.04 billion||$2.89||26.94|
Danaher has higher revenue and earnings than Fortive. Danaher is trading at a lower price-to-earnings ratio than Fortive, indicating that it is currently the more affordable of the two stocks.
Danaher Corporation designs, manufactures, and markets professional, medical, industrial, and commercial products and services worldwide. The company's Life Sciences segment provides laser scanning, compound, surgical, and other stereo microscopes. This segment also offers filtration, separation, and purification technologies to the biopharmaceutical, food and beverage, medical, aerospace, microelectronics, and general industrial sectors. Its Diagnostics segment provides chemistry, immunoassay, microbiology, and automation systems, as well as hematology and flow cytometry products. The company offers analytical instruments, reagents, consumables, software, and services for hospitals, physicians' offices, reference laboratories, and other critical care settings. Its Dental segment provides consumables, equipment, and services to diagnose, treat, and prevent disease and ailments of the teeth, gums, and supporting bone. This segment offers implant systems, dental prosthetics, and associated treatment planning software; orthodontic bracket systems and lab products; endodontic systems and related consumables; restorative materials and instruments; infection prevention products; digital imaging systems and software; air and electric powered handpieces, and consumables; and treatment units. Its Environmental & Applied Solutions segment offers instrumentation, services, and disinfection systems to analyze, treat, and manage water in residential, commercial, industrial, and natural resource applications. This segment also provides equipment, software, services, and consumables for packaging, printing, marking, coding, and traceability applications for consumer, pharmaceutical, and industrial products. The company was formerly known as Diversified Mortgage Investors, Inc. and changed its name to Danaher Corporation in 1984. Danaher Corporation was founded in 1969 and is headquartered in Washington, the District of Columbia.
Fortive Corporation designs, develops, manufactures, markets, and services professional and engineered products, software, and services worldwide. Its Professional Instrumentation segment provides test tools, and thermal imaging and calibration equipment for electrical, industrial, electronic, and calibration applications; online condition-based monitoring equipment; portable gas detection equipment, consumables, and software as a service offerings; subscription-based technical, analytical, and compliance services; and maintenance management software for critical infrastructure in utility, industrial, energy, construction, public safety, mining, and healthcare applications. This segment also provides product realization services and products that help developers and engineers across the end-to-end product creation cycle from concepts to finished products; materials components; and devices that sense, monitor, and control operational or manufacturing variables. This segment markets its products and services under the FLUKE, FLUKE BIOMEDICAL, FLUKE NETWORKS, INDUSTRIAL SCIENTIFIC, LANDAUER, QUALITROL, INVETECH, KEITHLEY, PACIFIC SCIENTIFIC ENERGETIC MATERIALS COMPANY, SONIX, and TEKTRONIX brands. Its Industrial Technologies segment offers solutions and services for use in fuel dispensing, remote fuel management, point-of-sale and payment systems, environmental compliance, vehicle tracking, and fleet and traffic management under the ANGI, GASBOY, GILBARCO, GILBARCO AUTOTANK, ORPAK, and VEEDER-ROOT brands; and various electromechanical and electronic motion control products, mechanical components, and supplemental braking systems for commercial vehicles under the DYNAPAR, HENGSTLER, JAKE BRAKE, KOLLMORGEN, PORTESCAP, and THOMSON brands. It also offers professional tools, toolboxes, and automotive diagnostic equipment under the MATCO brand; and wheel service equipment under the COATS brand. The company was incorporated in 2016 and is headquartered in Everett, Washington.
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