Financial Review: Thermo Fisher Scientific (TMO) and Thoratec (THOR)

Thermo Fisher Scientific (NYSE: TMO) and Thoratec (NASDAQ:THOR) are both healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.

Dividends

Thermo Fisher Scientific pays an annual dividend of $0.60 per share and has a dividend yield of 0.3%. Thoratec does not pay a dividend. Thermo Fisher Scientific pays out 9.8% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Thermo Fisher Scientific and Thoratec, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Thermo Fisher Scientific 0 1 14 0 2.93
Thoratec 0 0 0 0 N/A

Thermo Fisher Scientific presently has a consensus price target of $220.92, indicating a potential upside of 4.90%.

Valuation and Earnings

This table compares Thermo Fisher Scientific and Thoratec’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Thermo Fisher Scientific $20.92 billion 4.04 $2.23 billion $6.10 34.53
Thoratec N/A N/A N/A $0.70 N/A

Thermo Fisher Scientific has higher revenue and earnings than Thoratec. Thoratec 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.

Profitability

This table compares Thermo Fisher Scientific and Thoratec’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Thermo Fisher Scientific 10.64% 16.01% 7.35%
Thoratec 10.29% 8.02% 6.71%

Insider and Institutional Ownership

86.5% of Thermo Fisher Scientific shares are owned by institutional investors. 0.5% of Thermo Fisher Scientific shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Thermo Fisher Scientific beats Thoratec on 9 of the 10 factors compared between the two stocks.

Thermo Fisher Scientific Company Profile

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.

Thoratec Company Profile

Thoratec Corporation develops, manufactures and markets medical devices used for mechanical circulatory support for the treatment of heart failure patients. The Company’s products include ventricular assist devices (VADs), such as HeartMate II Left Ventricular Assist System (HeartMate II), HeartMate III Left Ventricular Assist System, Thoratec Paracorporeal Ventricular Assist Device (PVAD) and Thoratec Implantable Ventricular Assist Device (IVAD). For acute circulatory support, the Company’s product lines are CentriMag Acute Circulatory System (CentriMag) and for pediatric patients PediMag/PediVAS Acute Circulatory System (PediMag/PediVAS). HeartMate III, a centrifugal-flow, chronic, left ventricular assist system.

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