Presbia PLC (NASDAQ: LENS) and Danaher Corporation (NYSE:DHR) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.
Volatility & Risk
Presbia PLC has a beta of 0.2, indicating that its stock price is 80% less volatile than the S&P 500. Comparatively, Danaher Corporation has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.
Danaher Corporation pays an annual dividend of $0.56 per share and has a dividend yield of 0.6%. Presbia PLC does not pay a dividend. Danaher Corporation pays out 16.5% of its earnings in the form of a dividend. Presbia PLC has increased its dividend for 3 consecutive years.
This is a summary of current recommendations for Presbia PLC and Danaher Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Presbia PLC presently has a consensus target price of $11.33, suggesting a potential upside of 269.16%. Danaher Corporation has a consensus target price of $92.96, suggesting a potential downside of 0.18%. Given Presbia PLC’s stronger consensus rating and higher possible upside, research analysts clearly believe Presbia PLC is more favorable than Danaher Corporation.
This table compares Presbia PLC and Danaher Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Presbia PLC and Danaher Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Presbia PLC||$10,000.00||5,255.84||-$15.75 million||($1.20)||-2.56|
|Danaher Corporation||$16.88 billion||3.84||$2.55 billion||$3.39||27.47|
Danaher Corporation has higher revenue and earnings than Presbia PLC. Presbia PLC is trading at a lower price-to-earnings ratio than Danaher Corporation, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
16.5% of Presbia PLC shares are held by institutional investors. Comparatively, 75.6% of Danaher Corporation shares are held by institutional investors. 74.7% of Presbia PLC shares are held by company insiders. Comparatively, 12.2% of Danaher Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Danaher Corporation beats Presbia PLC on 10 of the 16 factors compared between the two stocks.
Presbia PLC Company Profile
Presbia PLC is an ophthalmic device company. The Company develops and markets an optical lens implant for treating presbyopia, the age-related loss of the ability to focus on near objects. The Company’s segment is the restoration of clear vision caused by presbyopia. The Company provides the refractive lens for patient surgeries and accessories for procedures performed exclusively outside the United States. The Company’s lens, referred to as the microlens, is a miniature lens designed to be surgically implanted in a patient’s eye to improve that patient’s ability to see objects at close distances. The microlens is a disc shaped lens that has a refractive zone in the periphery designed to improve near vision problems associated with presbyopia and a central zone that is designed to improve distance vision. The Company’s solution is a standalone solution for plano presbyopes, or those individuals suffering from presbyopia but do not have any other visual disorders.
Danaher Corporation Company Profile
Danaher Corporation (Danaher) designs, manufactures and markets professional, medical, industrial and commercial products and services. The Company operates through four segments: Life Sciences, which offers a range of research tools that scientists use to study the basic building blocks of life, including genes, proteins, metabolites and cells, in order to understand the causes of disease, identify new therapies and test new drugs and vaccines; Diagnostics; which offers analytical instruments, reagents, consumables, software and services; Dental, which provides products that are used to diagnose, treat and prevent disease and ailments of the teeth, gums and supporting bone, and Environmental & Applied Solutions, which consists of various lines of business, including water quality and product identification. As of December 31, 2016, Danaher’s research and development, manufacturing, sales, distribution, service and administrative facilities were located in over 60 countries.
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