Danaher (NYSE:DHR – Get Free Report) and Ramsay Health Care (OTCMKTS:RMYHY – Get Free Report) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.
Volatility and Risk
Danaher has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Ramsay Health Care has a beta of 0.16, indicating that its share price is 84% less volatile than the S&P 500.
Valuation & Earnings
This table compares Danaher and Ramsay Health Care”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Danaher | $23.88 billion | 6.81 | $3.90 billion | $4.85 | 47.45 |
| Ramsay Health Care | N/A | N/A | N/A | N/A | N/A |
Danaher has higher revenue and earnings than Ramsay Health Care.
Institutional & Insider Ownership
79.1% of Danaher shares are owned by institutional investors. 11.2% of Danaher shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Danaher and Ramsay Health Care’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Danaher | 14.44% | 10.92% | 6.99% |
| Ramsay Health Care | N/A | N/A | N/A |
Dividends
Danaher pays an annual dividend of $1.28 per share and has a dividend yield of 0.6%. Ramsay Health Care pays an annual dividend of $0.10 per share and has a dividend yield of 1.9%. Danaher pays out 26.4% of its earnings in the form of a dividend. Danaher has increased its dividend for 2 consecutive years.
Analyst Ratings
This is a breakdown of recent ratings for Danaher and Ramsay Health Care, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Danaher | 0 | 5 | 21 | 0 | 2.81 |
| Ramsay Health Care | 0 | 2 | 0 | 0 | 2.00 |
Danaher currently has a consensus price target of $248.25, suggesting a potential upside of 7.88%. Given Danaher’s stronger consensus rating and higher possible upside, analysts clearly believe Danaher is more favorable than Ramsay Health Care.
Summary
Danaher beats Ramsay Health Care on 11 of the 13 factors compared between the two stocks.
About Danaher
Danaher Corporation designs, manufactures, and markets professional, medical, industrial, and commercial products and services worldwide. The Biotechnology segments offers bioprocess technologies, consumables, and services that advance, accelerate, and integrate the development and manufacture of therapeutics; cell line and cell culture media development services; cell culture media, process liquids and buffers for manufacturing, chromatography resins, filtration technologies, aseptic fill finish; single-use hardware and consumables and services, such as the design and installation of full manufacturing suites; lab filtration, separation, and purification; lab-scale protein purification and analytical tools; reagents, membranes, and services; and healthcare filtration solutions. The Life Sciences segment provides mass spectrometers; flow cytometry, genomics, lab automation, centrifugation, liquid handling automation instruments, antibodies and reagents, and particle counting and characterization; microscopes; protein consumables; industrial filtration products; and genomic medicines, such as custom nucleic acid products, plasmid DNA, RNA, and proteins under the ABCAM, ALDEVRON, BECKMAN COULTER, IDT, LEICA MICROSYSTEMS, MOLECULAR DEVICES, PALL, PHENOMENEX and SCIEX brands. The Diagnostics segment offers chemistry, immunoassay, microbiology, and automation systems; and molecular, acute care, and pathology diagnostics products. This segment also provides clinical instruments, reagents, consumables, software, and services for hospitals, physicians' offices, reference laboratories, and other critical care settings. The company was formerly known as Diversified Mortgage Investors, Inc. and changed its name to Danaher Corporation in 1984. Danaher Corporation was founded in 1969 and is based in Washington, the District of Columbia.
About Ramsay Health Care
Ramsay Health Care Limited owns and operates hospitals. The company offers health care services to public and private patients. It operates facilities in approximately 530 locations in the Asia Pacific, the United Kingdom, France, and Nordics. Ramsay Health Care Limited was founded in 1964 and is based in Sydney, Australia.
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