Analyzing Thermo Fisher Scientific (TMO) and The Competition

Thermo Fisher Scientific (NYSE: TMO) is one of 83 publicly-traded companies in the “Advanced Medical Equipment & Technology” industry, but how does it contrast to its peers? We will compare Thermo Fisher Scientific to similar businesses based on the strength of its valuation, dividends, risk, earnings, analyst recommendations, institutional ownership and profitability.

Insider and Institutional Ownership

83.6% of Thermo Fisher Scientific shares are owned by institutional investors. Comparatively, 51.1% of shares of all “Advanced Medical Equipment & Technology” companies are owned by institutional investors. 0.5% of Thermo Fisher Scientific shares are owned by insiders. Comparatively, 18.7% of shares of all “Advanced Medical Equipment & Technology” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Thermo Fisher Scientific has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Thermo Fisher Scientific’s peers have a beta of 0.90, meaning that their average stock price is 10% less volatile than the S&P 500.

Profitability

This table compares Thermo Fisher Scientific and its peers’ 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%
Thermo Fisher Scientific Competitors -327.91% -35.75% -12.50%

Dividends

Thermo Fisher Scientific pays an annual dividend of $0.60 per share and has a dividend yield of 0.3%. Thermo Fisher Scientific pays out 10.2% of its earnings in the form of a dividend. As a group, “Advanced Medical Equipment & Technology” companies pay a dividend yield of 0.9% and pay out 25.6% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Thermo Fisher Scientific and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Thermo Fisher Scientific 0 1 14 0 2.93
Thermo Fisher Scientific Competitors 267 1850 3311 105 2.59

Thermo Fisher Scientific presently has a consensus target price of $205.00, indicating a potential upside of 5.76%. As a group, “Advanced Medical Equipment & Technology” companies have a potential downside of 7.96%. Given Thermo Fisher Scientific’s stronger consensus rating and higher possible upside, research analysts clearly believe Thermo Fisher Scientific is more favorable than its peers.

Valuation and Earnings

This table compares Thermo Fisher Scientific and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Thermo Fisher Scientific $19.20 billion $4.81 billion 32.91
Thermo Fisher Scientific Competitors $2.06 billion $438.96 million -76.08

Thermo Fisher Scientific has higher revenue and earnings than its peers. Thermo Fisher Scientific is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Thermo Fisher Scientific beats its peers on 12 of the 15 factors compared.

About Thermo Fisher Scientific

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.

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