Thermo Fisher Scientific (NYSE: TMO) and ViewRay (NASDAQ:VRAY) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, profitability, earnings, institutional ownership and risk.
Insider & Institutional Ownership
83.8% of Thermo Fisher Scientific shares are owned by institutional investors. Comparatively, 53.9% of ViewRay shares are owned by institutional investors. 0.5% of Thermo Fisher Scientific shares are owned by company insiders. Comparatively, 62.8% of ViewRay shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares Thermo Fisher Scientific and ViewRay’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
Thermo Fisher Scientific has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, ViewRay has a beta of -0.23, meaning that its share price is 123% less volatile than the S&P 500.
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.
Valuation & Earnings
This table compares Thermo Fisher Scientific and ViewRay’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Thermo Fisher Scientific||$18.27 billion||4.13||$2.02 billion||$5.89||31.95|
|ViewRay||$22.24 million||21.65||-$50.63 million||($1.29)||-6.32|
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.
This is a summary of current ratings and recommmendations for Thermo Fisher Scientific and ViewRay, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Thermo Fisher Scientific||0||1||14||0||2.93|
Thermo Fisher Scientific presently has a consensus price target of $205.00, indicating a potential upside of 8.92%. ViewRay has a consensus price target of $10.00, indicating a potential upside of 22.70%. 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.
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.
ViewRay Company Profile
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.
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