Tandem Diabetes Care (NASDAQ:TNDM – Get Free Report) and Thermo Fisher Scientific (NYSE:TMO – Get Free Report) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.
Insider and Institutional Ownership
89.2% of Thermo Fisher Scientific shares are owned by institutional investors. 2.1% of Tandem Diabetes Care shares are owned by insiders. Comparatively, 0.3% of Thermo Fisher Scientific shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent ratings for Tandem Diabetes Care and Thermo Fisher Scientific, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tandem Diabetes Care | 1 | 11 | 9 | 1 | 2.45 |
| Thermo Fisher Scientific | 0 | 6 | 18 | 2 | 2.85 |
Volatility and Risk
Tandem Diabetes Care has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500. Comparatively, Thermo Fisher Scientific has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.
Valuation and Earnings
This table compares Tandem Diabetes Care and Thermo Fisher Scientific”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tandem Diabetes Care | $1.01 billion | 1.02 | -$204.71 million | ($1.40) | -10.83 |
| Thermo Fisher Scientific | $44.56 billion | 4.26 | $6.70 billion | $18.19 | 28.05 |
Thermo Fisher Scientific has higher revenue and earnings than Tandem Diabetes Care. Tandem Diabetes Care is trading at a lower price-to-earnings ratio than Thermo Fisher Scientific, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Tandem Diabetes Care and Thermo Fisher Scientific’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tandem Diabetes Care | -9.20% | -53.88% | -7.88% |
| Thermo Fisher Scientific | 15.15% | 16.86% | 8.15% |
Summary
Thermo Fisher Scientific beats Tandem Diabetes Care on 12 of the 15 factors compared between the two stocks.
About Tandem Diabetes Care
Tandem Diabetes Care, Inc., a medical device company, designs, develops, and commercializes technology solutions for people living with diabetes in the United States and internationally. The company's flagship product is the t:slim X2 insulin delivery system, a pump platform for managing insulin delivery and display continuous glucose monitoring sensor information directly on the pump home screen; and Tandem Mobi insulin pump, an automated insulin delivery system. It also sells single-use products, including cartridges for storing and delivering insulin, and infusion sets that connect the insulin pump to the user's body. In addition, the company offers Tandem Device Updater used to update the pump software from a personal computer; Tandem Source, a web-based data management platform, which provides a visual way to display diabetes therapy management data from the pumps, integrated CGMs, and supported blood glucose meters; and Sugarmate, a mobile app used to help people visualize diabetes therapy data. The company was formerly known as Phluid Inc. and changed its name to Tandem Diabetes Care, Inc. in January 2008. Tandem Diabetes Care, Inc. was incorporated in 2006 and is headquartered in San Diego, California.
About Thermo Fisher Scientific
Thermo Fisher Scientific Inc. provides life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and biopharma services in the North America, Europe, Asia-Pacific, and internationally. The company's Life Sciences Solutions segment offers reagents, instruments, and consumables for biological and medical research, discovery, and production of drugs and vaccines, as well as diagnosis of infections and diseases; and solutions include biosciences, genetic sciences, and bio production to pharmaceutical, biotechnology, agricultural, clinical, healthcare, academic, and government markets. Its Analytical Instruments segment provides instruments, consumables, software, and services for pharmaceutical, biotechnology, academic, government, environmental, and other research and industrial markets, as well as clinical laboratories. The company's Specialty Diagnostics segment offers liquid, ready-to-use, and lyophilized immunodiagnostic reagent kits, as well as calibrators, controls, protein detection assays, and instruments; immunodiagnostics develops, manufactures and markets complete bloodtest systems to support the clinical diagnosis and monitoring of allergy, asthma and autoimmune diseases; dehydrated and prepared culture media, collection and transport systems, instrumentation, and consumables; human leukocyte antigen typing and testing for organ transplant market; and healthcare products. Its Laboratory Products and Biopharma Services segment provides laboratory products, research and safety market channel, and pharma services and clinical research. It offers products and services through a direct sales force, customer-service professionals, electronic commerce, and third-party distributors under Thermo Scientific; Applied Biosystems; Invitrogen; Fisher Scientific; Unity Lab Services; and Patheon and PPD. Thermo Fisher Scientific Inc. was founded in 1956 and is headquartered in Waltham, Massachusetts.
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