Analyzing Luminex Corporation (LMNX) & Thermo Fisher Scientific (TMO)
Luminex Corporation (NASDAQ: LMNX) and Thermo Fisher Scientific (NYSE:TMO) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.
Volatility & Risk
Luminex Corporation has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500. Comparatively, Thermo Fisher Scientific has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.
Insider & Institutional Ownership
78.1% of Luminex Corporation shares are owned by institutional investors. Comparatively, 83.3% of Thermo Fisher Scientific shares are owned by institutional investors. 6.9% of Luminex Corporation shares are owned by company insiders. Comparatively, 0.5% of Thermo Fisher Scientific shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Luminex Corporation and Thermo Fisher Scientific’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Luminex Corporation||$297.73 million||3.02||$49.82 million||$0.32||63.81|
|Thermo Fisher Scientific||$19.20 billion||3.89||$4.81 billion||$5.74||33.32|
Thermo Fisher Scientific has higher revenue and earnings than Luminex Corporation. Thermo Fisher Scientific is trading at a lower price-to-earnings ratio than Luminex Corporation, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for Luminex Corporation and Thermo Fisher Scientific, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Thermo Fisher Scientific||0||1||14||0||2.93|
Luminex Corporation currently has a consensus target price of $19.33, suggesting a potential downside of 5.32%. Thermo Fisher Scientific has a consensus target price of $203.00, suggesting a potential upside of 6.13%. Given Thermo Fisher Scientific’s stronger consensus rating and higher possible upside, analysts clearly believe Thermo Fisher Scientific is more favorable than Luminex Corporation.
This table compares Luminex Corporation and Thermo Fisher Scientific’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Thermo Fisher Scientific||11.80%||15.97%||7.48%|
Luminex Corporation pays an annual dividend of $0.24 per share and has a dividend yield of 1.2%. Thermo Fisher Scientific pays an annual dividend of $0.60 per share and has a dividend yield of 0.3%. Luminex Corporation pays out 75.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Thermo Fisher Scientific pays out 10.5% of its earnings in the form of a dividend.
Thermo Fisher Scientific beats Luminex Corporation on 13 of the 16 factors compared between the two stocks.
Luminex Corporation Company Profile
Luminex Corporation develops, manufactures and sells biological testing technologies with applications throughout the diagnostics, pharmaceutical and life sciences industries. The Company’s products are focused on the molecular diagnostic testing market, which includes human genetics, personalized medicine and infectious disease segments. The Company has a range of instruments using its xMAP technology, which includes its LUMINEX 100/200 systems offer 100-plex testing; the Company’s FLEXMAP 3D system is its high-throughput, 500-plex testing system, and its MAGPIX system provides 50-plex testing using imaging rather than flow cytometry. By using its xMAP technology, the end users are able to generate multiple simultaneous results per sample. The Company primarily serves the diagnostics, pharmaceutical and life sciences industries by marketing products, including its testing equipment and assays, to a range of testing laboratories.
Thermo Fisher Scientific Company Profile
Thermo Fisher Scientific Inc. develops, manufactures and sells a range of products. The Company provides analytical instruments, equipment, reagents and consumables, software and services for research, manufacturing, analysis, discovery and diagnostics. It operates through four segments: Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics, and Laboratory Products and Services. The Life Sciences Solutions segment provides a portfolio of reagents, instruments and consumables. The Analytical Instruments segment provides a range of instruments, consumables, software and services. The Specialty Diagnostics segment offers a range of diagnostic test kits, reagents, culture media, instruments and associated products. The Laboratory Products and Services segment offers controlled temperature technologies products, growth protection and separation products, and water and laboratory products.
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