Head-To-Head Review: Waters (WAT) and Thoratec (THOR)

Waters (NYSE: WAT) and Thoratec (NASDAQ:THOR) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Valuation and Earnings

This table compares Waters and Thoratec’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Waters $2.17 billion 7.27 $521.50 million $6.78 29.23
Thoratec N/A N/A N/A $0.70 N/A

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

Profitability

This table compares Waters and Thoratec’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Waters 24.34% 23.61% 11.84%
Thoratec 10.29% 8.02% 6.71%

Insider and Institutional Ownership

92.3% of Waters shares are owned by institutional investors. 5.1% of Waters shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and target prices for Waters and Thoratec, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Waters 1 9 5 0 2.27
Thoratec 0 0 0 0 N/A

Waters presently has a consensus target price of $192.17, suggesting a potential downside of 3.02%.

Summary

Waters beats Thoratec on 8 of the 8 factors compared between the two stocks.

Waters Company Profile

Waters Corporation is an analytical instrument manufacturer. The Company operates through two segments: Waters and TA. It designs, manufactures, sells and services high performance liquid chromatography (HPLC), ultra performance liquid chromatography (UPLC and together with HPLC, referred to as LC) and mass spectrometry (MS) technology systems and support products, including chromatography columns, other consumable products and post-warranty service plans. It also designs, manufactures, sells and services thermal analysis, rheometry and calorimetry instruments through its TA product line. It is also a developer and supplier of software-based products that interface with the Company’s instruments, as well as other suppliers’ instruments. Its LC and LC-MS instruments are utilized in a range of industries to detect, identify, monitor and measure the chemical, physical and biological composition of materials, and to purify a range of compounds.

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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