Critical Survey: Thermo Fisher Scientific (TMO) versus Luminex Corporation (LMNX)
Thermo Fisher Scientific (NYSE: TMO) and Luminex Corporation (NASDAQ:LMNX) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.
This is a summary of current ratings for Thermo Fisher Scientific and Luminex Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Thermo Fisher Scientific||0||1||14||0||2.93|
Thermo Fisher Scientific currently has a consensus target price of $203.00, indicating a potential upside of 4.93%. Luminex Corporation has a consensus target price of $21.25, indicating a potential upside of 3.36%. Given Thermo Fisher Scientific’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Thermo Fisher Scientific is more favorable than Luminex Corporation.
Earnings & Valuation
This table compares Thermo Fisher Scientific and Luminex Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Thermo Fisher Scientific||$19.20 billion||3.93||$4.81 billion||$5.74||33.70|
|Luminex Corporation||$297.73 million||3.04||$49.82 million||$0.32||64.25|
Thermo Fisher Scientific has higher revenue and earnings than Luminex Corporation. Thermo Fisher Scientific is trading at a lower price-to-earnings ratio than Luminex Corporation, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
83.4% of Thermo Fisher Scientific shares are owned by institutional investors. Comparatively, 78.0% of Luminex Corporation shares are owned by institutional investors. 0.5% of Thermo Fisher Scientific shares are owned by company insiders. Comparatively, 6.9% of Luminex Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Thermo Fisher Scientific pays an annual dividend of $0.60 per share and has a dividend yield of 0.3%. Luminex Corporation pays an annual dividend of $0.24 per share and has a dividend yield of 1.2%. Thermo Fisher Scientific pays out 10.5% of its earnings in the form of a dividend. Luminex Corporation pays out 75.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Thermo Fisher Scientific and Luminex Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Thermo Fisher Scientific||11.80%||15.97%||7.48%|
Risk & Volatility
Thermo Fisher Scientific has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, Luminex Corporation has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500.
Thermo Fisher Scientific beats Luminex Corporation on 13 of the 16 factors compared between the two stocks.
About Thermo Fisher Scientific
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.
About Luminex Corporation
Luminex Corporation develops, manufactures and sells biological testing technologies with applications throughout the diagnostics, pharmaceutical and life sciences industries. The Company’s products are focused on the molecular diagnostic testing market, which includes human genetics, personalized medicine and infectious disease segments. The Company has a range of instruments using its xMAP technology, which includes its LUMINEX 100/200 systems offer 100-plex testing; the Company’s FLEXMAP 3D system is its high-throughput, 500-plex testing system, and its MAGPIX system provides 50-plex testing using imaging rather than flow cytometry. By using its xMAP technology, the end users are able to generate multiple simultaneous results per sample. The Company primarily serves the diagnostics, pharmaceutical and life sciences industries by marketing products, including its testing equipment and assays, to a range of testing laboratories.
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