Neogen (NASDAQ: NEOG) and Palomar Medical Technologies (NASDAQ:PMTI) are both healthcare companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitability, institutional ownership, risk, analyst recommendations and earnings.

Profitability

This table compares Neogen and Palomar Medical Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Neogen 12.28% 9.93% 8.85%
Palomar Medical Technologies N/A N/A N/A

Analyst Recommendations

This is a summary of recent ratings for Neogen and Palomar Medical Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Neogen 0 2 0 0 2.00
Palomar Medical Technologies 0 0 0 0 N/A

Given Neogen’s higher probable upside, equities analysts clearly believe Neogen is more favorable than Palomar Medical Technologies.

Volatility and Risk

Neogen has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500. Comparatively, Palomar Medical Technologies has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500.

Valuation & Earnings

This table compares Neogen and Palomar Medical Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Neogen $361.59 million 8.82 $43.79 million $1.19 70.13
Palomar Medical Technologies N/A N/A N/A ($0.27) -49.67

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

Insider & Institutional Ownership

87.1% of Neogen shares are owned by institutional investors. 4.2% of Neogen shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Neogen beats Palomar Medical Technologies on 9 of the 9 factors compared between the two stocks.

Neogen Company Profile

Neogen Corporation develops, manufactures and markets a range of products and services dedicated to food and animal safety. The Company operates through two segments: Food Safety and Animal Safety. The Food Safety segment produces and markets diagnostic test kits and related products used by food producers and processors to detect harmful natural toxins, foodborne bacteria, allergens and levels of general sanitation. The Animal Safety segment is primarily engaged in the production and marketing of products dedicated to animal health, including a range of consumable products marketed to veterinarians and animal health product distributors. The Animal Safety segment also provides genetic identification services. Additionally, the Animal Safety segment produces and markets rodenticides, disinfectants and insecticides to assist in the control of rodents and disease in and around agricultural, food production and other facilities.

Palomar Medical Technologies Company Profile

Palomar Medical Technologies, Inc. (Palomar) is a researcher and developer of aesthetic light-based systems for hair removal and other cosmetic procedures, including both lasers and high powered lamps. The Company offers a range of products based on technologies that include, but are not limited to: hair removal; body sculpting, including laser-assisted liposuction; removal of vascular lesions, such as rosacea, spider veins, port wine stains and hemangiomas; wrinkle reduction; removal of leg veins; removal of benign pigmented lesions, such as age and sun spots, freckles and melasma; tattoo removal; acne treatment; skin resurfacing, pseudofolliculitis barbae (PFB) treatment; treatment of red pigmentation in hypertrophic and keloid scars; treatment of verrucae, skin tags and seborrheic keratosis; skin tightening through soft tissue coagulation; scars, and other skin treatments. In June 2013, Cynosure Inc announced the completion of its acquisition of Palomar Medical Technologies Inc.

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