Agilent Technologies (NYSE:A) and Avantor (NYSE:AVTR) Head to Head Review

Agilent Technologies (NYSE:A) and Avantor (NYSE:AVTR) are both large-cap healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, valuation, analyst recommendations, risk, earnings, dividends and institutional ownership.

Earnings & Valuation

This table compares Agilent Technologies and Avantor”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Agilent Technologies	$6.95 billion	7.09	$1.30 billion	$5.08	34.41
Avantor	$6.55 billion	1.60	-$530.20 million	$0.50	30.98

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

Profitability

This table compares Agilent Technologies and Avantor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Agilent Technologies	19.53%	24.45%	13.09%
Avantor	5.08%	9.79%	4.74%

Risk & Volatility

Agilent Technologies has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, Avantor has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Agilent Technologies and Avantor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Agilent Technologies	0	4	18	0	2.82
Avantor	1	13	2	0	2.06

Agilent Technologies currently has a consensus target price of $181.45, suggesting a potential upside of 3.81%. Avantor has a consensus target price of $14.77, suggesting a potential downside of 4.66%. Given Agilent Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Agilent Technologies is more favorable than Avantor.

Insider and Institutional Ownership

95.1% of Avantor shares are held by institutional investors. 0.3% of Avantor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Agilent Technologies beats Avantor on 12 of the 14 factors compared between the two stocks.

About Agilent Technologies

Agilent Technologies, Inc. provides application focused solutions to the life sciences, diagnostics, and applied chemical markets worldwide. The company operates in three segments: Life Sciences and Applied Markets, Diagnostics and Genomics, and Agilent CrossLab. The Life Sciences and Applied Markets segment offers liquid chromatography systems and components; liquid chromatography mass spectrometry systems; gas chromatography systems and components; gas chromatography mass spectrometry systems; inductively coupled plasma mass spectrometry instruments; atomic absorption instruments; microwave plasma-atomic emission spectrometry instruments; inductively coupled plasma optical emission spectrometry instruments; raman spectroscopy; cell analysis plate based assays; flow cytometer; real-time cell analyzer; cell imaging systems; microplate reader; laboratory software; information management and analytics; laboratory automation and robotic systems; dissolution testing; and vacuum pumps, and measurement technologies. The Diagnostics and Genomics segment focuses on genomics, nucleic acid contract manufacturing and research and development, pathology, companion diagnostics, reagent partnership, and biomolecular analysis businesses. The Agilent CrossLab segment provides GC and LC columns, sample preparation products, custom chemistries, and laboratory instrument supplies; and offers services portfolio, including repairs, parts, maintenance, installations, training, compliance support, software as a service, asset management, and consulting services. The company markets its products through direct sales, distributors, resellers, manufacturer’s representatives, and electronic commerce. Agilent Technologies, Inc. was incorporated in 1999 and is headquartered in Santa Clara, California.

About Avantor

Avantor, Inc. engages in the provision of mission-critical products and services to customers in the biopharma, healthcare, education and government, advanced technologies, and applied materials industries in the Americas, Europe, Asia, the Middle East, and Africa. The company offers materials and consumables, such as purity chemicals and reagents, lab products and supplies, formulated silicone materials, customized excipients, customized single-use assemblies, process chromatography resins and columns, analytical sample prep kits, education and microbiology products, clinical trial kits, peristaltic pumps, and fluid handling tips. It also provides equipment and instrumentation products, including filtration systems, virus inactivation systems, incubators, analytical instruments, evaporators, ultra-low-temperature freezers, biological safety cabinets, and critical environment supplies. In addition, the company offers services and specialty procurements comprising onsite lab and production, clinical, equipment, procurement and sourcing, and biopharmaceutical material scale-up and development services. Further, it provides scientific research support services, such as DNA extraction, bioreactor servicing, clinical and biorepository, and compound management services. The company was founded in 1904 and is headquartered in Radnor, Pennsylvania.