Neogen Corporation (NASDAQ: NEOG) and Landauer (NYSE:LDR) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.

Dividends

Landauer pays an annual dividend of $1.10 per share and has a dividend yield of 1.6%. Neogen Corporation does not pay a dividend. Landauer pays out 57.0% of its earnings in the form of a dividend.

Volatility and Risk

Neogen Corporation has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500. Comparatively, Landauer has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.

Earnings & Valuation

This table compares Neogen Corporation and Landauer’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Neogen Corporation $373.21 million 7.47 $81.51 million $1.19 61.29
Landauer $153.35 million 4.24 $39.95 million $1.93 34.92

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

Institutional & Insider Ownership

86.1% of Neogen Corporation shares are owned by institutional investors. Comparatively, 79.5% of Landauer shares are owned by institutional investors. 4.2% of Neogen Corporation shares are owned by insiders. Comparatively, 6.6% of Landauer shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Neogen Corporation and Landauer’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Neogen Corporation 12.28% 9.93% 8.85%
Landauer 12.09% 80.03% 10.11%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Neogen Corporation and Landauer, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Neogen Corporation 0 1 0 0 2.00
Landauer 0 1 0 0 2.00

Summary

Neogen Corporation beats Landauer on 8 of the 13 factors compared between the two stocks.

About Neogen Corporation

Neogen Corporation develops, manufactures and markets a range of products and services dedicated to food and animal safety. The Company operates through two segments: Food Safety and Animal Safety. The Food Safety segment produces and markets diagnostic test kits and related products used by food producers and processors to detect harmful natural toxins, foodborne bacteria, allergens and levels of general sanitation. The Animal Safety segment is primarily engaged in the production and marketing of products dedicated to animal health, including a range of consumable products marketed to veterinarians and animal health product distributors. The Animal Safety segment also provides genetic identification services. Additionally, the Animal Safety segment produces and markets rodenticides, disinfectants and insecticides to assist in the control of rodents and disease in and around agricultural, food production and other facilities.

About Landauer

Landauer, Inc. is a provider of technical and analytical services to determine occupational and environmental radiation exposure. The Company is a provider of outsourced medical physics services, and a provider of radiology related medical products. The Company operates through three segments: Radiation Measurement, Medical Physics and Medical Products. The Company provides radiation dosimetry services to hospitals, medical and dental offices, universities, national laboratories, nuclear facilities and other industries. Medical physics services are provided through the Company’s Landauer Medical Physics (LMP) division. The Company uses LMP as a platform to expand into the medical physics services market, serving domestic hospitals, radiation therapy centers and imaging centers. The Company’s Medical Products segment provides medical consumable accessories used in radiology, radiation therapy and image guided surgery procedures.

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