Critical Analysis: Mesa Laboratories (MLAB) and Fortive (FTV)
Mesa Laboratories (NASDAQ: MLAB) and Fortive (NYSE:FTV) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.
Mesa Laboratories pays an annual dividend of $0.64 per share and has a dividend yield of 0.4%. Fortive pays an annual dividend of $0.28 per share and has a dividend yield of 0.4%. Mesa Laboratories pays out 15.2% of its earnings in the form of a dividend. Fortive pays out 9.7% 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.
This table compares Mesa Laboratories and Fortive’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Mesa Laboratories and Fortive’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Mesa Laboratories||$93.67 million||6.85||$11.18 million||$4.22||40.20|
|Fortive||$6.66 billion||3.94||$1.04 billion||$2.89||26.04|
Fortive has higher revenue and earnings than Mesa Laboratories. Fortive is trading at a lower price-to-earnings ratio than Mesa Laboratories, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Mesa Laboratories has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500. Comparatively, Fortive has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Mesa Laboratories and Fortive, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Fortive has a consensus target price of $76.89, indicating a potential upside of 2.16%. Given Fortive’s higher probable upside, analysts plainly believe Fortive is more favorable than Mesa Laboratories.
Insider and Institutional Ownership
72.9% of Mesa Laboratories shares are held by institutional investors. Comparatively, 81.3% of Fortive shares are held by institutional investors. 15.7% of Mesa Laboratories shares are held by insiders. Comparatively, 12.1% of Fortive shares 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.
Fortive beats Mesa Laboratories on 9 of the 15 factors compared between the two stocks.
About Mesa Laboratories
Mesa Laboratories, Inc. designs, manufactures, and markets quality control instruments and disposable products. The company's Instruments segment offers data loggers, which are precision instruments used in critical manufacturing, quality control, and validation applications; medical meters and calibration solutions used to test various parameters of the dialysis fluid, and the calibration and operation of the dialysis machine; gas flow calibration and air sampling equipment that are used for industrial hygiene assessments, calibration of gas metering equipment, and environmental air monitoring; and torque testing systems used for measure bottle cap tightness. This segment's products are used in healthcare, pharmaceutical, food and beverage, medical device, industrial hygiene, environmental air sampling, and semiconductor industries. Its Biological Indicators segment manufactures and markets biological indicators comprising spore strips, self-contained products, and culture media, as well as process challenge devices; and testing services. This segment also distributes chemical indicators that are used to assess the effectiveness of sterilization processes, including steam, hydrogen peroxide, ethylene oxide, and radiation. The company's Cold Chain Monitoring segment offers systems, which are used to monitor various environmental parameters, such as temperature, humidity, and differential pressure for use in hospitals, pharmaceutical and medical device manufacturers, blood banks, pharmacies, and various other laboratory and industrial environments; and parameter monitoring services for products in a cold chain. Its Cold Chain Packaging segment offers packaging development consulting services and thermal packaging products. The company markets its products through distributors in the United States, Europe, Africa, Asia, South America, Australia, Canada, and Central America. Mesa Laboratories, Inc. was founded in 1982 and is headquartered in Lakewood, Colorado.
Fortive Corporation designs, develops, manufactures, markets, and services professional and engineered products, software, and services worldwide. Its Professional Instrumentation segment provides test tools, and thermal imaging and calibration equipment for electrical, industrial, electronic, and calibration applications; online condition-based monitoring equipment; portable gas detection equipment, consumables, and software as a service offerings; subscription-based technical, analytical, and compliance services; and maintenance management software for critical infrastructure in utility, industrial, energy, construction, public safety, mining, and healthcare applications. This segment also provides product realization services and products that help developers and engineers across the end-to-end product creation cycle from concepts to finished products; materials components; and devices that sense, monitor, and control operational or manufacturing variables. This segment markets its products and services under the FLUKE, FLUKE BIOMEDICAL, FLUKE NETWORKS, INDUSTRIAL SCIENTIFIC, LANDAUER, QUALITROL, INVETECH, KEITHLEY, PACIFIC SCIENTIFIC ENERGETIC MATERIALS COMPANY, SONIX, and TEKTRONIX brands. Its Industrial Technologies segment offers solutions and services for use in fuel dispensing, remote fuel management, point-of-sale and payment systems, environmental compliance, vehicle tracking, and fleet and traffic management under the ANGI, GASBOY, GILBARCO, GILBARCO AUTOTANK, ORPAK, and VEEDER-ROOT brands; and various electromechanical and electronic motion control products, mechanical components, and supplemental braking systems for commercial vehicles under the DYNAPAR, HENGSTLER, JAKE BRAKE, KOLLMORGEN, PORTESCAP, and THOMSON brands. It also offers professional tools, toolboxes, and automotive diagnostic equipment under the MATCO brand; and wheel service equipment under the COATS brand. The company was incorporated in 2016 and is headquartered in Everett, Washington.
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