Danaher (NYSE: DHR) and Cynosure (NASDAQ:CYNO) are both healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.
Earnings & Valuation
This table compares Danaher and Cynosure’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Danaher||$16.88 billion||4.14||$2.55 billion||$3.36||29.93|
Institutional & Insider Ownership
76.1% of Danaher shares are held by institutional investors. 12.2% of Danaher shares are held by insiders. Comparatively, 2.9% of Cynosure shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares Danaher and Cynosure’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and price targets for Danaher and Cynosure, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Danaher currently has a consensus price target of $95.89, suggesting a potential downside of 4.64%. Cynosure has a consensus price target of $64.00, suggesting a potential upside of Infinity. Given Cynosure’s higher probable upside, analysts clearly believe Cynosure is more favorable than Danaher.
Danaher pays an annual dividend of $0.56 per share and has a dividend yield of 0.6%. Cynosure does not pay a dividend. Danaher pays out 16.7% of its earnings in the form of a dividend.
Danaher beats Cynosure on 10 of the 13 factors compared between the two stocks.
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.
Cynosure, Inc. develops, manufactures and markets aesthetic treatment systems that enable plastic surgeons, dermatologists and other medical practitioners to perform non-invasive and minimally invasive procedures to remove hair, treat vascular and benign pigmented lesions, remove multi-colored tattoos, revitalize the skin, reduce fat through laser lipolysis, reduce cellulite, clear nails infected by toe fungus, ablate sweat glands and improve women’s health. The Company also markets radiofrequency (RF), energy-sourced medical devices for surgical applications, such as facial plastic and general surgery, gynecology, ear, nose, and throat procedures, ophthalmology, oral and maxillofacial surgery, podiatry and proctology. The Company sells its products globally under the Cynosure, Palomar, ConBio and Ellman brand names. Its product portfolio includes single energy source systems, as well as workstations that incorporate two or more different types of lasers or light-based technologies.
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