Financial Analysis: PerkinElmer (PKI) versus Its Peers

PerkinElmer (NYSE: PKI) is one of 80 public companies in the “Advanced Medical Equipment & Technology” industry, but how does it contrast to its competitors? We will compare PerkinElmer to similar companies based on the strength of its valuation, analyst recommendations, institutional ownership, earnings, risk, dividends and profitability.

Risk and Volatility

PerkinElmer has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, PerkinElmer’s competitors have a beta of 1.27, suggesting that their average share price is 27% more volatile than the S&P 500.

Dividends

PerkinElmer pays an annual dividend of $0.28 per share and has a dividend yield of 0.4%. PerkinElmer pays out 12.7% of its earnings in the form of a dividend. As a group, “Advanced Medical Equipment & Technology” companies pay a dividend yield of 0.9% and pay out 28.1% of their earnings in the form of a dividend.

Institutional & Insider Ownership

91.7% of PerkinElmer shares are owned by institutional investors. Comparatively, 50.7% of shares of all “Advanced Medical Equipment & Technology” companies are owned by institutional investors. 2.2% of PerkinElmer shares are owned by company insiders. Comparatively, 18.3% of shares of all “Advanced Medical Equipment & Technology” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for PerkinElmer and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PerkinElmer 2 8 5 0 2.20
PerkinElmer Competitors 271 1886 3396 108 2.59

PerkinElmer presently has a consensus price target of $68.23, suggesting a potential downside of 6.69%. As a group, “Advanced Medical Equipment & Technology” companies have a potential downside of 9.67%. Given PerkinElmer’s higher probable upside, analysts plainly believe PerkinElmer is more favorable than its competitors.

Earnings & Valuation

This table compares PerkinElmer and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
PerkinElmer $2.12 billion $234.29 million 33.09
PerkinElmer Competitors $2.14 billion $229.91 million -32.98

PerkinElmer’s competitors have higher revenue, but lower earnings than PerkinElmer. PerkinElmer is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares PerkinElmer and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PerkinElmer 18.27% 13.11% 6.82%
PerkinElmer Competitors -311.46% -23.92% -9.65%

Summary

PerkinElmer beats its competitors on 8 of the 15 factors compared.

PerkinElmer Company Profile

PerkinElmer, Inc. is a provider of products, services and solutions to the diagnostics, research, environmental, industrial and laboratory services markets. The Company operates through two segments: Discovery & Analytical Solutions and Diagnostics. The Discovery & Analytical Solutions segment serves the environmental, food, industrial, life sciences research and laboratory services markets. It provides analytical instrumentation for the industrial market, which includes the chemical, electronics, energy, lubricant, petrochemical and polymer industries. Its products include AAnalyst, Altus, Aquamatic, Avio, AxION, Clarus, DairyGuard, AlphaLISA, AlphaPlex, AlphaScreen, Alpha SureFire, Cell carrier and cell::explorer. The Diagnostics segment is focused on reproductive health, emerging market diagnostics and applied genomics. Its products include AutoDELFIA, BACS-on-Beads, Bioo Scientific, BoBs, Datalytix, Dexela, Dexela CMOS FPDs, Evolution, ViaCord, and Zephyr.

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