Danaher Corporation (NYSE: DHR) and Natus Medical (NASDAQ:BABY) are both multi-sector conglomerates companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.

Insider & Institutional Ownership

75.8% of Danaher Corporation shares are owned by institutional investors. Comparatively, 92.7% of Natus Medical shares are owned by institutional investors. 12.2% of Danaher Corporation shares are owned by insiders. Comparatively, 5.5% of Natus Medical shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Danaher Corporation pays an annual dividend of $0.56 per share and has a dividend yield of 0.6%. Natus Medical does not pay a dividend. Danaher Corporation pays out 17.8% of its earnings in the form of a dividend. Natus Medical has raised its dividend for 3 consecutive years.

Risk and Volatility

Danaher Corporation has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, Natus Medical has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Valuation and Earnings

This table compares Danaher Corporation and Natus Medical’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Danaher Corporation $17.43 billion 3.46 $4.16 billion $3.14 27.63
Natus Medical $445.49 million 2.40 $48.00 million $0.57 57.72

Danaher Corporation has higher revenue and earnings than Natus Medical. Danaher Corporation is trading at a lower price-to-earnings ratio than Natus Medical, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Danaher Corporation and Natus Medical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Danaher Corporation 12.63% 11.15% 5.95%
Natus Medical 4.20% 12.09% 8.06%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Danaher Corporation and Natus Medical, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Danaher Corporation 0 3 11 0 2.79
Natus Medical 1 1 1 0 2.00

Danaher Corporation currently has a consensus target price of $92.75, indicating a potential upside of 6.90%. Natus Medical has a consensus target price of $47.00, indicating a potential upside of 42.86%. Given Natus Medical’s higher probable upside, analysts plainly believe Natus Medical is more favorable than Danaher Corporation.

Summary

Danaher Corporation beats Natus Medical on 10 of the 17 factors compared between the two stocks.

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.

Natus Medical Company Profile

Natus Medical Incorporated is a provider of newborn care and neurology healthcare products and services used for the screening, diagnosis, detection, treatment, monitoring and tracking of common medical ailments in newborn care, hearing impairment, neurological dysfunction, epilepsy, sleep disorders, neuromuscular diseases and balance and mobility disorders. The Company’s product offerings include computerized neurodiagnostic systems for audiology, neurology, polysomnography, and neonatology, as well as newborn care products, such as hearing screening systems, phototherapy devices for the treatment of newborn jaundice, head-cooling products for the treatment of brain injury in newborns, incubators to control the newborn’s environment, and software systems for managing and tracking disorders and diseases for public health laboratories. The Company is organized into three strategic business units: Neurology, Newborn Care and Otometrics.

Receive News & Ratings for Danaher Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Danaher Corporation and related companies with MarketBeat.com's FREE daily email newsletter.