Financial Analysis: Rapid Micro Biosystems (NASDAQ:RPID) vs. Danaher (NYSE:DHR)

Danaher (NYSE:DHR) and Rapid Micro Biosystems (NASDAQ:RPID) are both healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.

Analyst Ratings

This is a breakdown of recent ratings for Danaher and Rapid Micro Biosystems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Danaher	0	5	19	1	2.84
Rapid Micro Biosystems	1	0	2	0	2.33

Danaher currently has a consensus price target of $228.91, indicating a potential upside of 5.78%. Rapid Micro Biosystems has a consensus price target of $6.00, indicating a potential upside of 282.17%. Given Rapid Micro Biosystems’ higher probable upside, analysts plainly believe Rapid Micro Biosystems is more favorable than Danaher.

Volatility & Risk

Danaher has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, Rapid Micro Biosystems has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500.

Valuation and Earnings

This table compares Danaher and Rapid Micro Biosystems”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Danaher	$24.57 billion	6.19	$3.61 billion	$5.63	38.44
Rapid Micro Biosystems	$35.18 million	2.24	-$47.12 million	($1.12)	-1.40

Danaher has higher revenue and earnings than Rapid Micro Biosystems. Rapid Micro Biosystems is trading at a lower price-to-earnings ratio than Danaher, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Danaher and Rapid Micro Biosystems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Danaher	15.95%	11.04%	6.81%
Rapid Micro Biosystems	-145.56%	-177.04%	-73.12%

Insider and Institutional Ownership

79.0% of Danaher shares are held by institutional investors. Comparatively, 52.6% of Rapid Micro Biosystems shares are held by institutional investors. 10.8% of Danaher shares are held by company insiders. Comparatively, 12.7% of Rapid Micro Biosystems 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.

Summary

Danaher beats Rapid Micro Biosystems on 12 of the 15 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 Rapid Micro Biosystems

Rapid Micro Biosystems, Inc., a life sciences technology company, provides products for the detection of microbial contamination in the manufacture of pharmaceutical, medical devices, and personal care products in the United States, Germany, Switzerland, Japan, and internationally. The company offers Growth Direct platform, which includes Growth Direct system, proprietary consumables, lab information management system connection software, and customer support and validation services. Its platform automates and modernizes the manual microbial quality control (MQC) testing workflows for therapeutic modalities, such as biologics, vaccines, cell and gene therapies, and sterile injectables. The company also provides onsite technical training services. Its solutions are used in environmental monitoring, water, bioburden, and sterility release testing applications. In addition, the company offers RMBNucleus software for the Growth Direct system; RMBNucleus Mold Alarm signals at the first sign of mold detection; RMBNucleus Central Manager portal streamlines coordination of multiple instruments; and Growth Direct LIMS connection software. Rapid Micro Biosystems, Inc. was formerly known as Genomic Profiling Systems, Inc. and changed its name to Rapid Micro Biosystems, Inc. in January 2007. The company was incorporated in 2006 and is headquartered in Lowell, Massachusetts.