Financial Contrast: Waters (WAT) & Thoratec (THOR)

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

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 24.06% 21.21% 10.75%
Thoratec 10.29% 8.02% 6.71%

Analyst Ratings

This is a breakdown of current ratings for Waters and Thoratec, as provided by MarketBeat.com.

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 currently has a consensus price target of $192.17, suggesting a potential downside of 2.24%.

Institutional & Insider Ownership

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

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Waters $2.17 billion 7.21 $521.50 million $6.78 28.99
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.

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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