In a recent analysis comparing two prominent medical companies, Thermo Fisher Scientific (NYSE:TMO) has emerged as the stronger investment option over Sartorius (OTCMKTS:SARTF). This assessment evaluates their performance across several critical metrics, including earnings, dividends, risk factors, valuation, and profitability.
Volatility and Risk Assessment
When assessing stock volatility, Sartorius has a beta of 0.98, indicating its stock is approximately 2% less volatile than the S&P 500 index. In contrast, Thermo Fisher Scientific exhibits a slightly lower beta of 0.9, suggesting its stock price is around 10% less volatile than the broader market. This data highlights that both companies maintain relatively stable stock prices compared to the overall market.
Analyst Recommendations and Valuation
Current ratings and target prices for both companies, as reported by MarketBeat, suggest a favorable outlook for Thermo Fisher. The company significantly outperforms Sartorius in terms of revenue and earnings per share (EPS). With a lower price-to-earnings ratio, Thermo Fisher is presently viewed as a more affordable investment option relative to Sartorius.
The detailed comparison reveals that Thermo Fisher’s financial strength positions it as a more attractive choice for investors seeking long-term growth. This includes stronger net margins and return on equity, which are critical indicators of profitability.
Institutional ownership plays a vital role in evaluating a company’s investment potential. A substantial 89.2% of Thermo Fisher Scientific shares are held by institutional investors, indicating strong confidence from large financial institutions. In contrast, only 0.3% of Thermo Fisher’s shares are owned by company insiders, further emphasizing the external confidence in its performance.
Company Profiles
Sartorius Aktiengesellschaft, founded in 1870 and headquartered in Göttingen, Germany, is engaged in providing bioprocess solutions and laboratory products globally. The company offers a diverse range of products, including bioreactors, lab equipment, and various analytical services. Sartorius serves multiple industries, including life sciences research and biopharmaceutical manufacturing.
On the other hand, Thermo Fisher Scientific was established in 1956 and is headquartered in Waltham, Massachusetts. The company specializes in life sciences solutions, analytical instruments, and biopharma services. Its extensive offerings include reagents, diagnostic instruments, and various laboratory products tailored for multiple sectors, including healthcare and environmental research.
In conclusion, the analysis indicates that Thermo Fisher Scientific outperforms Sartorius in ten out of thirteen evaluated factors, making it a compelling option for investors looking to capitalize on growth in the medical and laboratory sectors.