ABAXIS (NASDAQ: ABAX) and Thermo Fisher Scientific (NYSE:TMO) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitabiliy, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.
ABAXIS pays an annual dividend of $0.56 per share and has a dividend yield of 1.1%. Thermo Fisher Scientific pays an annual dividend of $0.60 per share and has a dividend yield of 0.3%. ABAXIS pays out 39.2% of its earnings in the form of a dividend. Thermo Fisher Scientific pays out 10.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Valuation and Earnings
This table compares ABAXIS and Thermo Fisher Scientific’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ABAXIS||$227.22 million||5.07||$51.83 million||$1.43||35.59|
|Thermo Fisher Scientific||$18.74 billion||3.65||$4.69 billion||$5.48||31.91|
Thermo Fisher Scientific has higher revenue and earnings than ABAXIS. Thermo Fisher Scientific is trading at a lower price-to-earnings ratio than ABAXIS, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
ABAXIS has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Thermo Fisher Scientific has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.
This is a summary of current recommendations and price targets for ABAXIS and Thermo Fisher Scientific, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Thermo Fisher Scientific||0||2||12||1||2.93|
ABAXIS currently has a consensus target price of $47.88, suggesting a potential downside of 5.92%. Thermo Fisher Scientific has a consensus target price of $184.29, suggesting a potential upside of 5.39%. Given Thermo Fisher Scientific’s stronger consensus rating and higher possible upside, analysts clearly believe Thermo Fisher Scientific is more favorable than ABAXIS.
This table compares ABAXIS and Thermo Fisher Scientific’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Thermo Fisher Scientific||11.58%||15.73%||7.44%|
Institutional & Insider Ownership
98.5% of ABAXIS shares are held by institutional investors. Comparatively, 86.9% of Thermo Fisher Scientific shares are held by institutional investors. 4.1% of ABAXIS shares are held by company insiders. Comparatively, 0.5% of Thermo Fisher Scientific shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Thermo Fisher Scientific beats ABAXIS on 10 of the 17 factors compared between the two stocks.
ABAXIS Company Profile
Abaxis, Inc. is a developer, manufacturer and marketer of portable blood analysis systems that are used in medical specialties in human or veterinary patient care to provide clinicians with blood constituent measurements. The Company markets and sells its products around the world through independent distributors and direct sales force. The Company’s segments are the medical market and the veterinary market. The Company’s medical market products include Piccolo chemistry analyzers and consumable products. The Company develops, manufactures and sells the Piccolo Xpress chemistry analyzer for use in human patient care to provide clinicians with blood constituent measurements. The Company’s veterinary market product offerings include VetScan chemistry analyzers and veterinary reagent discs, VetScan hematology instruments and related reagent kits, VetScan VSpro specialty analyzers and related consumables, VetScan i-STAT analyzers and related consumables and VetScan rapid tests.
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.
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