Analyzing Agilent Technologies (NYSE:A) and Qiagen (NYSE:QGEN)

Agilent Technologies (NYSE:A) and Qiagen (NYSE:QGEN) are both healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

70.0% of Qiagen shares are held by institutional investors. 9.0% of Qiagen shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Agilent Technologies and Qiagen, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Agilent Technologies	0	4	15	0	2.79
Qiagen	0	9	4	1	2.43

Agilent Technologies currently has a consensus price target of $173.65, suggesting a potential downside of 0.14%. Qiagen has a consensus price target of $43.93, suggesting a potential downside of 3.55%. Given Agilent Technologies’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Agilent Technologies is more favorable than Qiagen.

Dividends

Agilent Technologies pays an annual dividend of $1.02 per share and has a dividend yield of 0.6%. Qiagen pays an annual dividend of $0.35 per share and has a dividend yield of 0.8%. Agilent Technologies pays out 20.1% of its earnings in the form of a dividend. Qiagen pays out 17.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Agilent Technologies has increased its dividend for 9 consecutive years. Qiagen is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Agilent Technologies and Qiagen’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Agilent Technologies	19.53%	24.45%	13.09%
Qiagen	19.49%	14.47%	8.34%

Volatility and Risk

Agilent Technologies has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, Qiagen has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500.

Earnings & Valuation

This table compares Agilent Technologies and Qiagen”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Agilent Technologies	$6.95 billion	7.06	$1.30 billion	$5.08	34.23
Qiagen	$2.10 billion	4.47	$424.88 million	$1.95	23.35

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

Summary

Agilent Technologies beats Qiagen on 13 of the 18 factors compared between the two stocks.

About Agilent Technologies

Agilent Technologies, Inc. provides application focused solutions to the life sciences, diagnostics, and applied chemical markets worldwide. The company operates in three segments: Life Sciences and Applied Markets, Diagnostics and Genomics, and Agilent CrossLab. The Life Sciences and Applied Markets segment offers liquid chromatography systems and components; liquid chromatography mass spectrometry systems; gas chromatography systems and components; gas chromatography mass spectrometry systems; inductively coupled plasma mass spectrometry instruments; atomic absorption instruments; microwave plasma-atomic emission spectrometry instruments; inductively coupled plasma optical emission spectrometry instruments; raman spectroscopy; cell analysis plate based assays; flow cytometer; real-time cell analyzer; cell imaging systems; microplate reader; laboratory software; information management and analytics; laboratory automation and robotic systems; dissolution testing; and vacuum pumps, and measurement technologies. The Diagnostics and Genomics segment focuses on genomics, nucleic acid contract manufacturing and research and development, pathology, companion diagnostics, reagent partnership, and biomolecular analysis businesses. The Agilent CrossLab segment provides GC and LC columns, sample preparation products, custom chemistries, and laboratory instrument supplies; and offers services portfolio, including repairs, parts, maintenance, installations, training, compliance support, software as a service, asset management, and consulting services. The company markets its products through direct sales, distributors, resellers, manufacturer’s representatives, and electronic commerce. Agilent Technologies, Inc. was incorporated in 1999 and is headquartered in Santa Clara, California.

About Qiagen

QIAGEN NV is a holding company, which engages in the provision of Sample to Insight solutions that enable customers to gain valuable molecular insights from samples containing the building blocks of life. The company sample technologies isolate and process DNA, RNA, and proteins from blood, tissue, and other materials. The firm assay technologies make these biomolecules visible and ready for analysis. Its bioinformatics software and knowledge bases interpret data to report relevant, actionable insights. The company was founded by Detlev H. Riesner and Metin Colpan on April 29, 1996, and is headquartered in Venlo, the Netherlands.