GenMark Diagnostics (NASDAQ: GNMK) and Danaher Corporation (NYSE:DHR) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Dividends

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for GenMark Diagnostics and Danaher Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GenMark Diagnostics 0 0 5 0 3.00
Danaher Corporation 0 4 11 0 2.73

GenMark Diagnostics currently has a consensus price target of $14.40, suggesting a potential upside of 83.67%. Danaher Corporation has a consensus price target of $92.13, suggesting a potential upside of 2.25%. Given GenMark Diagnostics’ stronger consensus rating and higher probable upside, research analysts plainly believe GenMark Diagnostics is more favorable than Danaher Corporation.

Volatility & Risk

GenMark Diagnostics has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Danaher Corporation has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.

Valuation & Earnings

This table compares GenMark Diagnostics and Danaher Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
GenMark Diagnostics $50.59 million 8.47 -$49.93 million ($1.21) -6.48
Danaher Corporation $17.43 billion 3.59 $4.16 billion $3.14 28.69

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

Institutional & Insider Ownership

75.7% of Danaher Corporation shares are owned by institutional investors. 7.5% of GenMark Diagnostics shares are owned by company insiders. Comparatively, 12.2% of Danaher Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
GenMark Diagnostics -111.96% -109.89% -60.26%
Danaher Corporation 12.63% 11.15% 5.95%

Summary

Danaher Corporation beats GenMark Diagnostics on 12 of the 16 factors compared between the two stocks.

GenMark Diagnostics Company Profile

GenMark Diagnostics, Inc. is a molecular diagnostics company. The Company is focused on developing and commercializing multiplex molecular tests that aid in the diagnosis of complex medical conditions. It develops and commercializes multiplex molecular tests based on its eSensor electrochemical detection technology. It offers four Food and Drug Administration (FDA)-cleared diagnostic tests which run on its XT-8 instrument; its Respiratory Viral Panel; its Cystic Fibrosis Genotyping Test; its Warfarin Sensitivity Test, and its Thrombophilia Risk Test. It also offers a Hepatitis C (HCV) genotyping test and associated custom manufactured reagents, as well as a 2C19 Genotyping Test, versions of which are available for use with its XT-8 instrument for research use only (RUO). Its XT-8 and ePlex test cartridges utilize the combination of distinct electrodes and multiple signal probes to detect dozens of target biomarkers from a single sample, thereby enabling highly multiplexed testing.

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.

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