Reviewing Danaher (NYSE:DHR) & Ginkgo Bioworks (NYSE:DNA)

Ginkgo Bioworks (NYSE:DNA) and Danaher (NYSE:DHR) are both healthcare companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.

Insider & Institutional Ownership

78.6% of Ginkgo Bioworks shares are owned by institutional investors. Comparatively, 79.0% of Danaher shares are owned by institutional investors. 12.7% of Ginkgo Bioworks shares are owned by insiders. Comparatively, 10.8% of Danaher shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Ginkgo Bioworks and Danaher, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ginkgo Bioworks	2	2	0	0	1.50
Danaher	0	5	19	1	2.84

Ginkgo Bioworks presently has a consensus price target of $7.00, suggesting a potential downside of 9.02%. Danaher has a consensus price target of $228.91, suggesting a potential upside of 8.02%. Given Danaher’s stronger consensus rating and higher probable upside, analysts clearly believe Danaher is more favorable than Ginkgo Bioworks.

Risk and Volatility

Ginkgo Bioworks has a beta of 1.78, suggesting that its stock price is 78% more volatile than the S&P 500. Comparatively, Danaher has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.

Valuation and Earnings

This table compares Ginkgo Bioworks and Danaher”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ginkgo Bioworks	$170.15 million	3.05	-$312.76 million	($5.01)	-1.54
Danaher	$24.57 billion	6.06	$3.61 billion	$5.63	37.64

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

Profitability

This table compares Ginkgo Bioworks and Danaher’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ginkgo Bioworks	-259.96%	-60.27%	-26.88%
Danaher	15.95%	11.04%	6.81%

Summary

Danaher beats Ginkgo Bioworks on 13 of the 15 factors compared between the two stocks.

About Ginkgo Bioworks

Ginkgo Bioworks Holdings, Inc., together with its subsidiaries, develops platform for cell programming in the United States. Its platform is used to program cells to enable biological production of products, such as novel therapeutics, food ingredients, and chemicals derived from petroleum. It serves pharma and biotech, agriculture, industrial and environment, food and nutrition, consumer and technology, and government and defense industries. Ginkgo Bioworks Holdings, Inc. was founded in 2008 and is headquartered in Boston, Massachusetts.

About Danaher

Danaher Corporation designs, manufactures, and markets professional, medical, industrial, and commercial products and services worldwide. The Biotechnology segments offers bioprocess technologies, consumables, and services that advance, accelerate, and integrate the development and manufacture of therapeutics; cell line and cell culture media development services; cell culture media, process liquids and buffers for manufacturing, chromatography resins, filtration technologies, aseptic fill finish; single-use hardware and consumables and services, such as the design and installation of full manufacturing suites; lab filtration, separation, and purification; lab-scale protein purification and analytical tools; reagents, membranes, and services; and healthcare filtration solutions. The Life Sciences segment provides mass spectrometers; flow cytometry, genomics, lab automation, centrifugation, liquid handling automation instruments, antibodies and reagents, and particle counting and characterization; microscopes; protein consumables; industrial filtration products; and genomic medicines, such as custom nucleic acid products, plasmid DNA, RNA, and proteins under the ABCAM, ALDEVRON, BECKMAN COULTER, IDT, LEICA MICROSYSTEMS, MOLECULAR DEVICES, PALL, PHENOMENEX and SCIEX brands. The Diagnostics segment offers chemistry, immunoassay, microbiology, and automation systems; and molecular, acute care, and pathology diagnostics products. This segment also provides clinical instruments, reagents, consumables, software, and services for hospitals, physicians' offices, reference laboratories, and other critical care settings. 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 based in Washington, the District of Columbia.