Mesa Laboratories (NASDAQ: MLAB) and Danaher (NYSE:DHR) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, earnings, profitability, valuation and institutional ownership.
Institutional and Insider Ownership
73.7% of Mesa Laboratories shares are owned by institutional investors. Comparatively, 76.6% of Danaher shares are owned by institutional investors. 15.7% of Mesa Laboratories shares are owned by insiders. Comparatively, 11.9% of Danaher shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This is a breakdown of current recommendations and price targets for Mesa Laboratories and Danaher, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Danaher has a consensus price target of $105.06, suggesting a potential upside of 5.98%. Given Danaher’s higher possible upside, analysts clearly believe Danaher is more favorable than Mesa Laboratories.
This table compares Mesa Laboratories and Danaher’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
Mesa Laboratories has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, Danaher has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.
Mesa Laboratories pays an annual dividend of $0.64 per share and has a dividend yield of 0.3%. Danaher pays an annual dividend of $0.64 per share and has a dividend yield of 0.6%. Mesa Laboratories pays out 10.4% of its earnings in the form of a dividend. Danaher pays out 15.9% 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.
Valuation and Earnings
This table compares Mesa Laboratories and Danaher’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Mesa Laboratories||$96.18 million||8.19||-$2.96 million||$6.18||33.47|
|Danaher||$18.33 billion||3.78||$2.49 billion||$4.03||24.60|
Danaher has higher revenue and earnings than Mesa Laboratories. Danaher is trading at a lower price-to-earnings ratio than Mesa Laboratories, indicating that it is currently the more affordable of the two stocks.
Danaher beats Mesa Laboratories on 8 of the 15 factors compared between the two stocks.
Mesa Laboratories Company Profile
Mesa Laboratories, Inc. designs, manufactures, and markets quality control instruments and disposable products. The company's Instruments segment offers data loggers, which are precision instruments used in critical manufacturing, quality control, and validation applications; medical meters and calibration solutions used to test various parameters of the dialysis fluid, and the calibration and operation of the dialysis machine; gas flow calibration and air sampling equipment that are used for industrial hygiene assessments, calibration of gas metering equipment, and environmental air monitoring; and torque testing systems used for measure bottle cap tightness. This segment's products are used in healthcare, pharmaceutical, food and beverage, medical device, industrial hygiene, environmental air sampling, and semiconductor industries. Its Biological Indicators segment manufactures and markets biological indicators comprising spore strips, self-contained products, and culture media, as well as process challenge devices; and testing services. This segment also distributes chemical indicators that are used to assess the effectiveness of sterilization processes, including steam, hydrogen peroxide, ethylene oxide, and radiation. The company's Cold Chain Monitoring segment offers systems, which are used to monitor various environmental parameters, such as temperature, humidity, and differential pressure for use in hospitals, pharmaceutical and medical device manufacturers, blood banks, pharmacies, and various other laboratory and industrial environments; and parameter monitoring services for products in a cold chain. Its Cold Chain Packaging segment offers packaging development consulting services and thermal packaging products. The company markets its products through distributors in the United States, Europe, Africa, Asia, South America, Australia, Canada, and Central America. Mesa Laboratories, Inc. was founded in 1982 and is headquartered in Lakewood, Colorado.
Danaher Company Profile
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.
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