Reviewing Bio-Rad Laboratories (BIO) & PerkinElmer (PKI)

Bio-Rad Laboratories (NYSE: BIO) and PerkinElmer (NYSE:PKI) are both mid-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Earnings & Valuation

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This table compares Bio-Rad Laboratories and PerkinElmer’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bio-Rad Laboratories $2.16 billion 3.36 $114.74 million $4.10 59.54
PerkinElmer $2.26 billion 3.58 $292.63 million $2.90 25.24

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

Risk and Volatility

Bio-Rad Laboratories has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, PerkinElmer has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Bio-Rad Laboratories and PerkinElmer, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bio-Rad Laboratories 0 1 4 0 2.80
PerkinElmer 1 7 4 0 2.25

Bio-Rad Laboratories currently has a consensus target price of $298.75, suggesting a potential upside of 22.39%. PerkinElmer has a consensus target price of $76.08, suggesting a potential upside of 3.94%. Given Bio-Rad Laboratories’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Bio-Rad Laboratories is more favorable than PerkinElmer.

Insider and Institutional Ownership

64.5% of Bio-Rad Laboratories shares are held by institutional investors. Comparatively, 91.9% of PerkinElmer shares are held by institutional investors. 28.3% of Bio-Rad Laboratories shares are held by company insiders. Comparatively, 2.1% of PerkinElmer shares are held by company 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 Bio-Rad Laboratories and PerkinElmer’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bio-Rad Laboratories 5.31% 3.63% 2.48%
PerkinElmer 12.97% 13.30% 6.51%

Dividends

PerkinElmer pays an annual dividend of $0.28 per share and has a dividend yield of 0.4%. Bio-Rad Laboratories does not pay a dividend. PerkinElmer pays out 9.7% of its earnings in the form of a dividend.

Summary

PerkinElmer beats Bio-Rad Laboratories on 8 of the 15 factors compared between the two stocks.

About Bio-Rad Laboratories

Bio-Rad Laboratories, Inc. (Bio-Rad) is a manufacturer and distributor of its life science research and clinical diagnostics products. The Company operates through two segments: Life Science and Clinical Diagnostics. It manufactures and supplies the life science research, healthcare, analytical chemistry and other markets with a range of products and systems used to separate complex chemical and biological materials and to identify, analyze and purify their components. The Life Science segment develops, manufactures, sells and services reagents, apparatus and instruments used for biological research. The Clinical Diagnostics segment develops, manufactures, sells and services automated test systems, informatics systems, test kits and specialized quality controls for the healthcare market. As of December 31, 2016, Bio-Rad sold more than 8,000 products and services to a client base, including scientific research, healthcare, education and government customers around the world.

About PerkinElmer

PerkinElmer, Inc. provides products, services, and solutions to the diagnostics, research, environmental, industrial, food, and laboratory services markets worldwide. The company operates in two segments, Discovery & Analytical Solutions and Diagnostics. The Discovery & Analytical Solutions segment develops and offers analytical technologies, solutions, and services for the environmental market that enable its customers to understand the characterization and health of various aspects, including air, water, and soil. It also provides solutions to farmers and food producers; an analytical instrumentation for the industrial market, which includes the chemical, semiconductor and electronics, energy, lubricant, petrochemical, and polymer industries; and laboratory services. In addition, this segment offers a suite of solutions comprising reagents, informatics, and detection and imaging technologies that enable scientists to enhance research breakthroughs in the life sciences research market. The Diagnostics segment provides instruments, reagents, and software test and screen products for the early detection of genetic disorders, such as pregnancy and early childhood, as well as infectious disease testing in the diagnostics market. Its products are used in diagnosing genetic abnormalities, disorders, and diseases, including down syndrome, hypothyroidism, infertility, and various metabolic conditions. This segment also develops technologies that enable and support genomic workflows using protein coupled receptor and next-generation DNA sequencing for use in applications covering oncology, genetic testing, and drug discovery. The company serves pharmaceutical and biotechnology companies, laboratories, academic and research institutions, public health authorities, private healthcare organizations, doctors, and government agencies. PerkinElmer, Inc. was founded in 1931 and is headquartered in Waltham, Massachusetts.

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