Head-To-Head Review: Mettler-Toledo International (NYSE:MTD) vs. Masimo (NASDAQ:MASI)

Masimo (NASDAQ:MASI) and Mettler-Toledo International (NYSE:MTD) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Masimo and Mettler-Toledo International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Masimo	1	3	4	0	2.38
Mettler-Toledo International	0	7	6	0	2.46

Masimo presently has a consensus price target of $189.40, suggesting a potential upside of 41.30%. Mettler-Toledo International has a consensus price target of $1,441.67, suggesting a potential upside of 2.81%. Given Masimo’s higher probable upside, research analysts plainly believe Masimo is more favorable than Mettler-Toledo International.

Profitability

This table compares Masimo and Mettler-Toledo International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Masimo	-33.20%	33.04%	13.92%
Mettler-Toledo International	21.20%	-426.96%	26.03%

Earnings & Valuation

This table compares Masimo and Mettler-Toledo International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Masimo	$2.09 billion	3.44	-$304.90 million	($10.54)	-12.72
Mettler-Toledo International	$3.87 billion	7.40	$863.14 million	$40.10	34.97

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

Institutional & Insider Ownership

86.0% of Masimo shares are held by institutional investors. Comparatively, 95.1% of Mettler-Toledo International shares are held by institutional investors. 9.7% of Masimo shares are held by company insiders. Comparatively, 1.9% of Mettler-Toledo International shares are held 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.

Volatility and Risk

Masimo has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, Mettler-Toledo International has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500.

Summary

Mettler-Toledo International beats Masimo on 11 of the 14 factors compared between the two stocks.

About Masimo

Masimo Corporation develops, manufactures, and markets various patient monitoring technologies, and automation and connectivity solutions worldwide. The company offers masimo signal extraction technology (SET) pulse oximetry with measure-through motion and low perfusion pulse oximetry monitoring to address the primary limitations of conventional pulse oximetry; Masimo rainbow SET platform, including rainbow SET Pulse CO-Oximetry products that allows noninvasive monitoring of carboxyhemoglobin, methemoglobin, hemoglobin concentration, fractional arterial oxygen saturation, oxygen content, pleth variability index, rainbow pleth variability index, respiration rate from the pleth, and oxygen reserve index, as well as acoustic respiration monitoring, SedLine brain function monitoring, NomoLine capnography and gas monitoring, and regional oximetry. It also provides brain function and hemodynamic monitoring solutions; patient position and activity tracking, and neuromodulation technology solutions; and Masimo Hospital Automation platform, including hospital automation solutions, including Patient SafetyNet, Patient SafetyNet Surveillance, SafetyNet, Replica, Iris, MyView, UniView, Uniview: 60, Masimo Sleep, Centroid, and Bridg; and nasal high-flow ventilation, neuromodulation therapeutics, and telehealth solutions. In addition, the company provides its products through direct sales force, distributors, and original equipment manufacturers partners to hospitals, emergency medical service and home care providers, long-term care facilities, physician offices, veterinarians, and consumers; and home wellness products through e-commerce internet sites, such as masimopersonalhealth.com, amazon.com, and shopify.com. Masimo Corporation was incorporated in 1989 and is headquartered in Irvine, California.

About Mettler-Toledo International

Mettler-Toledo International Inc. manufactures and supplies precision instruments and services in the Americas, Europe, Asia, and internationally. It operates through five segments: U.S. Operations, Swiss Operations, Western European Operations, Chinese Operations, and Other. The company’s laboratory instruments include laboratory balances, liquid pipetting solutions, automated laboratory reactors, real-time analytics, titrators, pH meters, process analytics sensors and analyzer technologies, physical value analyzers, density and refractometry, thermal analysis systems, and other analytical instruments; and LabX, a laboratory software platform to manage and analyze data generated from its instruments. Its industrial instruments comprise industrial weighing instruments and related terminals, automatic dimensional measurement and data capture solutions, vehicle scale systems, industrial software, metal detection equipment, x-ray systems, check weighing equipment, camera-based imaging equipment, track-and-trace solutions, and product inspection systems. The company’s retail weighing solutions consist of weighing and software solutions, AI-driven image recognition solution, and automated packaging and labelling solutions for the meat backroom. It serves the life science industry, independent research organizations, and testing labs; food and beverage manufacturers; food retailers; chemical, specialty chemical, and cosmetics companies; food retailers; transportation and logistics, metals, and electronics industries; and the academic community through its direct sales force and indirect distribution channels. Mettler-Toledo International Inc. was incorporated in 1991 and is based in Columbus, Ohio.