Thermo Fisher Scientific (NYSE:TMO – Get Free Report) and Waters (NYSE:WAT – Get Free Report) are both large-cap healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Thermo Fisher Scientific and Waters, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Thermo Fisher Scientific | 0 | 4 | 23 | 2 | 2.93 |
| Waters | 0 | 6 | 17 | 1 | 2.79 |
Thermo Fisher Scientific presently has a consensus price target of $683.64, suggesting a potential downside of 4.76%. Waters has a consensus price target of $475.48, suggesting a potential upside of 0.77%. Given Waters’ higher probable upside, analysts plainly believe Waters is more favorable than Thermo Fisher Scientific.
Earnings and Valuation
This table compares Thermo Fisher Scientific and Waters”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Thermo Fisher Scientific | $44.56 billion | 5.97 | $6.70 billion | $18.96 | 37.86 |
| Waters | $3.17 billion | 14.65 | $642.63 million | $2.33 | 202.52 |
Thermo Fisher Scientific has higher revenue and earnings than Waters. Thermo Fisher Scientific is trading at a lower price-to-earnings ratio than Waters, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Thermo Fisher Scientific has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, Waters has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.
Institutional and Insider Ownership
89.2% of Thermo Fisher Scientific shares are owned by institutional investors. Comparatively, 94.0% of Waters shares are owned by institutional investors. 0.3% of Thermo Fisher Scientific shares are owned by insiders. Comparatively, 0.3% of Waters shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Thermo Fisher Scientific and Waters’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Thermo Fisher Scientific | 14.94% | 17.33% | 8.18% |
| Waters | 1.75% | 9.91% | 6.11% |
Summary
Thermo Fisher Scientific beats Waters on 10 of the 15 factors compared between the two stocks.
About Thermo Fisher Scientific
Thermo Fisher Scientific develops and supplies products and services used in scientific research, clinical diagnostics, and pharmaceutical and biotechnology manufacturing. Its offerings include laboratory instruments, reagents and consumables, analytical equipment, diagnostic tests, and services that support drug development and clinical research. The company operates through businesses focused on life sciences, analytical instruments, specialty diagnostics, and laboratory products and biopharma services.
About Waters
Waters Corporation develops and supplies analytical instruments, software, and consumables used to identify, measure, and characterize chemical and biological materials. Its products include liquid chromatography and mass spectrometry systems, which help customers analyze complex samples. The company serves pharmaceutical and biotechnology businesses, academic and government laboratories, and customers in fields such as food, environmental testing, and materials science. Waters operates internationally, with customers and operations across multiple regions.
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