Avantor (NYSE:AVTR – Get Free Report) and Medpace (NASDAQ:MEDP – Get Free Report) are both large-cap healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.
Valuation and Earnings
This table compares Avantor and Medpace”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Avantor | $6.55 billion | 1.58 | -$530.20 million | ($0.84) | -18.28 |
| Medpace | $2.53 billion | 6.67 | $451.12 million | $17.06 | 35.42 |
Volatility & Risk
Avantor has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Medpace has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500.
Institutional and Insider Ownership
95.1% of Avantor shares are held by institutional investors. Comparatively, 78.0% of Medpace shares are held by institutional investors. 0.3% of Avantor shares are held by insiders. Comparatively, 20.5% of Medpace shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Avantor and Medpace’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Avantor | -8.81% | 9.92% | 4.75% |
| Medpace | 17.67% | 110.15% | 24.84% |
Analyst Ratings
This is a summary of recent ratings and price targets for Avantor and Medpace, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Avantor | 1 | 15 | 2 | 0 | 2.06 |
| Medpace | 0 | 10 | 3 | 0 | 2.23 |
Avantor currently has a consensus target price of $12.88, indicating a potential downside of 16.09%. Medpace has a consensus target price of $607.73, indicating a potential upside of 0.58%. Given Medpace’s stronger consensus rating and higher probable upside, analysts clearly believe Medpace is more favorable than Avantor.
Summary
Medpace beats Avantor on 12 of the 14 factors compared between the two stocks.
About Avantor
Avantor, Inc. engages in the provision of mission-critical products and services to customers in the biopharma, healthcare, education and government, advanced technologies, and applied materials industries in the Americas, Europe, Asia, the Middle East, and Africa. The company offers materials and consumables, such as purity chemicals and reagents, lab products and supplies, formulated silicone materials, customized excipients, customized single-use assemblies, process chromatography resins and columns, analytical sample prep kits, education and microbiology products, clinical trial kits, peristaltic pumps, and fluid handling tips. It also provides equipment and instrumentation products, including filtration systems, virus inactivation systems, incubators, analytical instruments, evaporators, ultra-low-temperature freezers, biological safety cabinets, and critical environment supplies. In addition, the company offers services and specialty procurements comprising onsite lab and production, clinical, equipment, procurement and sourcing, and biopharmaceutical material scale-up and development services. Further, it provides scientific research support services, such as DNA extraction, bioreactor servicing, clinical and biorepository, and compound management services. The company was founded in 1904 and is headquartered in Radnor, Pennsylvania.
About Medpace
Medpace Holdings, Inc. engages in the provision of outsourced clinical development services to the biotechnology, pharmaceutical and medical device industries. Its services include medical department, clinical trial management, data-driven feasibility, study-start-up, clinical monitoring, regulatory affairs, patient recruitment and retention, medical writing, biometrics and data sciences, pharmacovigilance, core laboratory, laboratories, clinics, and quality assurance. The company was founded by August James Troendle in 1992 and is headquartered in Cincinnati, OH.
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