Danaher (NYSE:DHR) versus Pacific Health Care Organization (OTCMKTS:PFHO) Head-To-Head Comparison

Danaher (NYSE:DHR) and Pacific Health Care Organization (OTCMKTS:PFHO) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Profitability

This table compares Danaher and Pacific Health Care Organization’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Danaher	14.89%	10.91%	6.94%
Pacific Health Care Organization	20.16%	9.95%	9.58%

Insider & Institutional Ownership

79.1% of Danaher shares are held by institutional investors. 10.8% of Danaher shares are held by company insiders. Comparatively, 61.6% of Pacific Health Care Organization shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Danaher and Pacific Health Care Organization”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Danaher	$24.78 billion	5.25	$3.61 billion	$5.17	35.57
Pacific Health Care Organization	$6.72 million	1.71	$1.39 million	$0.11	8.18

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

Analyst Recommendations

This is a breakdown of recent ratings for Danaher and Pacific Health Care Organization, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Danaher	0	4	19	1	2.88
Pacific Health Care Organization	0	0	0	0	0.00

Danaher presently has a consensus target price of $235.14, indicating a potential upside of 27.88%. Given Danaher’s stronger consensus rating and higher possible upside, research analysts plainly believe Danaher is more favorable than Pacific Health Care Organization.

Volatility and Risk

Danaher has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, Pacific Health Care Organization has a beta of 0.11, meaning that its stock price is 89% less volatile than the S&P 500.

Summary

Danaher beats Pacific Health Care Organization on 12 of the 15 factors compared between the two stocks.

About Danaher

Danaher Corporation designs, manufactures, and markets professional, medical, industrial, and commercial products and services worldwide. The Biotechnology segments offers bioprocess technologies, consumables, and services that advance, accelerate, and integrate the development and manufacture of therapeutics; cell line and cell culture media development services; cell culture media, process liquids and buffers for manufacturing, chromatography resins, filtration technologies, aseptic fill finish; single-use hardware and consumables and services, such as the design and installation of full manufacturing suites; lab filtration, separation, and purification; lab-scale protein purification and analytical tools; reagents, membranes, and services; and healthcare filtration solutions. The Life Sciences segment provides mass spectrometers; flow cytometry, genomics, lab automation, centrifugation, liquid handling automation instruments, antibodies and reagents, and particle counting and characterization; microscopes; protein consumables; industrial filtration products; and genomic medicines, such as custom nucleic acid products, plasmid DNA, RNA, and proteins under the ABCAM, ALDEVRON, BECKMAN COULTER, IDT, LEICA MICROSYSTEMS, MOLECULAR DEVICES, PALL, PHENOMENEX and SCIEX brands. The Diagnostics segment offers chemistry, immunoassay, microbiology, and automation systems; and molecular, acute care, and pathology diagnostics products. This segment also provides clinical instruments, reagents, consumables, software, and services for hospitals, physicians' offices, reference laboratories, and other critical care settings. The company was formerly known as Diversified Mortgage Investors, Inc. and changed its name to Danaher Corporation in 1984. Danaher Corporation was founded in 1969 and is based in Washington, the District of Columbia.

About Pacific Health Care Organization

Pacific Health Care Organization, Inc., together with its subsidiaries, operates as a specialty workers' compensation cost containment company in the United States. It is involved in managing and administering health care organizations (HCOs) and medical provider networks (MPNs). The company also provides claims-related services, including utilization review, medical case management, medical bill review, employee advocate services, workers' compensation carve-outs, expert witness testimony, and Medicare set-aside services. It serves insurers, third party administrators, self-administered employers, municipalities, and other industries. The company was formerly known as Clear Air, Inc. and changed its name to Pacific Health Care Organization, Inc. in January 2001. Pacific Health Care Organization, Inc. was incorporated in 1970 and is based in Irvine, California.