Thermo Fisher Scientific (TMO) versus The Competition Head-To-Head Survey

Thermo Fisher Scientific (NYSE:TMO) is one of 109 public companies in the “Life Sciences Tools & Services” industry, but how does it weigh in compared to its competitors? We will compare Thermo Fisher Scientific to similar businesses based on the strength of its profitability, earnings, dividends, risk, institutional ownership, valuation and analyst recommendations.

Insider & Institutional Ownership

89.2% of Thermo Fisher Scientific shares are held by institutional investors. Comparatively, 53.7% of shares of all “Life Sciences Tools & Services” companies are held by institutional investors. 0.3% of Thermo Fisher Scientific shares are held by insiders. Comparatively, 15.0% of shares of all “Life Sciences Tools & Services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Thermo Fisher Scientific and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Thermo Fisher Scientific	14.94%	17.33%	8.18%
Thermo Fisher Scientific Competitors	-540.59%	-166.46%	-13.58%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Thermo Fisher Scientific and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Thermo Fisher Scientific	1	4	18	2	2.84
Thermo Fisher Scientific Competitors	946	3159	5472	176	2.50

Thermo Fisher Scientific presently has a consensus target price of $689.10, indicating a potential upside of 0.98%. As a group, “Life Sciences Tools & Services” companies have a potential downside of 2.28%. Given Thermo Fisher Scientific’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Thermo Fisher Scientific is more favorable than its competitors.

Earnings and Valuation

This table compares Thermo Fisher Scientific and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Thermo Fisher Scientific	$44.56 billion	$6.70 billion	35.99
Thermo Fisher Scientific Competitors	$2.30 billion	$55.88 billion	-13.37

Thermo Fisher Scientific has higher revenue, but lower earnings than its competitors. Thermo Fisher Scientific is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Thermo Fisher Scientific has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, Thermo Fisher Scientific’s competitors have a beta of 1.14, indicating that their average stock price is 14% more volatile than the S&P 500.

Dividends

Thermo Fisher Scientific pays an annual dividend of $1.88 per share and has a dividend yield of 0.3%. Thermo Fisher Scientific pays out 9.9% of its earnings in the form of a dividend. As a group, “Life Sciences Tools & Services” companies pay a dividend yield of 8.5% and pay out 44.5% of their earnings in the form of a dividend. Thermo Fisher Scientific has raised its dividend for 8 consecutive years.

Summary

Thermo Fisher Scientific beats its competitors on 11 of the 15 factors compared.

Thermo Fisher Scientific Company Profile

Thermo Fisher Scientific Inc. provides life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and biopharma services in the North America, Europe, Asia-Pacific, and internationally. The company's Life Sciences Solutions segment offers reagents, instruments, and consumables for biological and medical research, discovery, and production of drugs and vaccines, as well as diagnosis of infections and diseases; and solutions include biosciences, genetic sciences, and bio production to pharmaceutical, biotechnology, agricultural, clinical, healthcare, academic, and government markets. Its Analytical Instruments segment provides instruments, consumables, software, and services for pharmaceutical, biotechnology, academic, government, environmental, and other research and industrial markets, as well as clinical laboratories. The company's Specialty Diagnostics segment offers liquid, ready-to-use, and lyophilized immunodiagnostic reagent kits, as well as calibrators, controls, protein detection assays, and instruments; immunodiagnostics develops, manufactures and markets complete bloodtest systems to support the clinical diagnosis and monitoring of allergy, asthma and autoimmune diseases; dehydrated and prepared culture media, collection and transport systems, instrumentation, and consumables; human leukocyte antigen typing and testing for organ transplant market; and healthcare products. Its Laboratory Products and Biopharma Services segment provides laboratory products, research and safety market channel, and pharma services and clinical research. It offers products and services through a direct sales force, customer-service professionals, electronic commerce, and third-party distributors under Thermo Scientific; Applied Biosystems; Invitrogen; Fisher Scientific; Unity Lab Services; and Patheon and PPD. Thermo Fisher Scientific Inc. was founded in 1956 and is headquartered in Waltham, Massachusetts.