Critical Analysis: Danaher (NYSE:DHR) & DocGo (NASDAQ:DCGO)

Danaher (NYSE:DHR) and DocGo (NASDAQ:DCGO) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.

Volatility and Risk

Danaher has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, DocGo has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Danaher and DocGo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Danaher	0	4	19	1	2.88
DocGo	1	2	3	0	2.33

Danaher presently has a consensus price target of $235.14, indicating a potential upside of 25.84%. DocGo has a consensus price target of $2.38, indicating a potential upside of 316.59%. Given DocGo’s higher probable upside, analysts plainly believe DocGo is more favorable than Danaher.

Profitability

This table compares Danaher and DocGo’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%
DocGo	-62.23%	-44.09%	-29.14%

Insider & Institutional Ownership

79.1% of Danaher shares are held by institutional investors. Comparatively, 56.4% of DocGo shares are held by institutional investors. 10.8% of Danaher shares are held by company insiders. Comparatively, 3.8% of DocGo shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Danaher and DocGo”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	5.34	$3.61 billion	$5.17	36.14
DocGo	$322.20 million	0.17	-$182.40 million	($1.91)	-0.30

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

Summary

Danaher beats DocGo on 13 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 DocGo

DocGo Inc. provides mobile health and medical transportation services for various health care providers in the United States and the United Kingdom. The company's transportation services include emergency response services; and non-emergency transport services comprise ambulance and wheelchair transportation services. It also offers mobile health services through its platform that are performed at home, offices, and other locations; event services, which include on-site healthcare support at sporting events and concerts; and total care management solutions comprising healthcare services and ancillary services, such as shelter. DocGo Inc. was founded in 2015 and is headquartered in New York, New York.