ViewRay (NASDAQ: VRAY) and Thermo Fisher Scientific (NYSE:TMO) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, dividends, analyst recommendations and risk.
Earnings & Valuation
This table compares ViewRay and Thermo Fisher Scientific’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|ViewRay||$22.24 million||29.05||-$50.63 million||($1.13)||-8.48|
|Thermo Fisher Scientific||$18.27 billion||4.17||$2.02 billion||$5.89||32.29|
Thermo Fisher Scientific has higher revenue and earnings than ViewRay. ViewRay is trading at a lower price-to-earnings ratio than Thermo Fisher Scientific, indicating that it is currently the more affordable of the two stocks.
Thermo Fisher Scientific pays an annual dividend of $0.60 per share and has a dividend yield of 0.3%. ViewRay does not pay a dividend. Thermo Fisher Scientific pays out 10.2% of its earnings in the form of a dividend.
Insider & Institutional Ownership
53.9% of ViewRay shares are owned by institutional investors. Comparatively, 83.8% of Thermo Fisher Scientific shares are owned by institutional investors. 62.8% of ViewRay shares are owned by insiders. Comparatively, 0.5% of Thermo Fisher Scientific shares are owned by 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.
This table compares ViewRay and Thermo Fisher Scientific’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Thermo Fisher Scientific||11.73%||15.94%||7.41%|
Risk and Volatility
ViewRay has a beta of -0.23, indicating that its stock price is 123% less volatile than the S&P 500. Comparatively, Thermo Fisher Scientific has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.
This is a breakdown of current recommendations for ViewRay and Thermo Fisher Scientific, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Thermo Fisher Scientific||0||1||14||0||2.93|
ViewRay presently has a consensus target price of $10.60, suggesting a potential upside of 10.65%. Thermo Fisher Scientific has a consensus target price of $205.00, suggesting a potential upside of 7.80%. Given ViewRay’s stronger consensus rating and higher probable upside, analysts clearly believe ViewRay is more favorable than Thermo Fisher Scientific.
Thermo Fisher Scientific beats ViewRay on 10 of the 15 factors compared between the two stocks.
ViewRay, Inc. designs, manufactures and markets MRIdian, the magnetic resonance imaging (MRI)-guided radiation therapy system to image and treat cancer patients simultaneously. The Company offers radiation therapy technology combined with magnetic resonance imaging. MRIdian integrates MRI technology, radiation delivery and the Company’s software to locate, target and track the position and shape of soft-tissue tumors while radiation is delivered. MRIdian delivers radiation to the tumor accurately while delivering less radiation to healthy tissue. MRIdian provides real-time imaging that defines the targeted tumor from the surrounding soft tissue and other critical organs during radiation treatment. MRIdian allows physicians to record the level of radiation exposure that the tumor has received and adapt the prescription between fractions as needed.
About Thermo Fisher Scientific
Thermo Fisher Scientific Inc. develops, manufactures and sells a range of products. The Company provides analytical instruments, equipment, reagents and consumables, software and services for research, manufacturing, analysis, discovery and diagnostics. It operates through four segments: Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics, and Laboratory Products and Services. The Life Sciences Solutions segment provides a portfolio of reagents, instruments and consumables. The Analytical Instruments segment provides a range of instruments, consumables, software and services. The Specialty Diagnostics segment offers a range of diagnostic test kits, reagents, culture media, instruments and associated products. The Laboratory Products and Services segment offers controlled temperature technologies products, growth protection and separation products, and water and laboratory products.
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