PerkinElmer (NYSE: PKI) and Thoratec (NASDAQ:THOR) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.

Dividends

PerkinElmer pays an annual dividend of $0.28 per share and has a dividend yield of 0.4%. Thoratec does not pay a dividend. PerkinElmer pays out 7.8% of its earnings in the form of a dividend.

Institutional and Insider Ownership

91.4% of PerkinElmer shares are held by institutional investors. 2.2% of PerkinElmer shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and target prices for PerkinElmer and Thoratec, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PerkinElmer 1 9 5 0 2.27
Thoratec 0 0 0 0 N/A

PerkinElmer currently has a consensus price target of $70.54, indicating a potential downside of 3.49%.

Earnings & Valuation

This table compares PerkinElmer and Thoratec’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PerkinElmer $2.12 billion 3.81 $234.29 million $3.60 20.30
Thoratec N/A N/A N/A $0.70 N/A

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

Profitability

This table compares PerkinElmer and Thoratec’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PerkinElmer 18.27% 13.11% 6.82%
Thoratec 10.29% 8.02% 6.71%

Summary

PerkinElmer beats Thoratec on 9 of the 10 factors compared between the two stocks.

About PerkinElmer

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.

About Thoratec

Thoratec Corporation develops, manufactures and markets medical devices used for mechanical circulatory support for the treatment of heart failure patients. The Company’s products include ventricular assist devices (VADs), such as HeartMate II Left Ventricular Assist System (HeartMate II), HeartMate III Left Ventricular Assist System, Thoratec Paracorporeal Ventricular Assist Device (PVAD) and Thoratec Implantable Ventricular Assist Device (IVAD). For acute circulatory support, the Company’s product lines are CentriMag Acute Circulatory System (CentriMag) and for pediatric patients PediMag/PediVAS Acute Circulatory System (PediMag/PediVAS). HeartMate III, a centrifugal-flow, chronic, left ventricular assist system.

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