Thermo Fisher Scientific (NYSE:TMO) vs. Rapid Micro Biosystems (NASDAQ:RPID) Head to Head Analysis

Rapid Micro Biosystems (NASDAQ:RPID) and Thermo Fisher Scientific (NYSE:TMO) are both healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Institutional & Insider Ownership

52.6% of Rapid Micro Biosystems shares are held by institutional investors. Comparatively, 89.2% of Thermo Fisher Scientific shares are held by institutional investors. 12.7% of Rapid Micro Biosystems shares are held by insiders. Comparatively, 0.3% of Thermo Fisher Scientific shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Rapid Micro Biosystems and Thermo Fisher Scientific’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rapid Micro Biosystems	-145.56%	-177.04%	-73.12%
Thermo Fisher Scientific	15.04%	17.09%	8.12%

Volatility and Risk

Rapid Micro Biosystems has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500. Comparatively, Thermo Fisher Scientific has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.

Valuation & Earnings

This table compares Rapid Micro Biosystems and Thermo Fisher Scientific”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rapid Micro Biosystems	$33.59 million	1.66	-$47.12 million	($1.12)	-0.99
Thermo Fisher Scientific	$44.56 billion	5.39	$6.70 billion	$18.59	34.92

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Rapid Micro Biosystems and Thermo Fisher Scientific, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rapid Micro Biosystems	1	0	2	0	2.33
Thermo Fisher Scientific	2	5	17	2	2.73

Rapid Micro Biosystems currently has a consensus target price of $6.00, suggesting a potential upside of 440.54%. Thermo Fisher Scientific has a consensus target price of $624.64, suggesting a potential downside of 3.77%. Given Rapid Micro Biosystems’ higher possible upside, analysts clearly believe Rapid Micro Biosystems is more favorable than Thermo Fisher Scientific.

Summary

Thermo Fisher Scientific beats Rapid Micro Biosystems on 12 of the 15 factors compared between the two stocks.

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.

About Thermo Fisher Scientific

Thermo Fisher Scientific Inc. provides life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and biopharma services in the North America, Europe, Asia-Pacific, and internationally. The company's Life Sciences Solutions segment offers reagents, instruments, and consumables for biological and medical research, discovery, and production of drugs and vaccines, as well as diagnosis of infections and diseases; and solutions include biosciences, genetic sciences, and bio production to pharmaceutical, biotechnology, agricultural, clinical, healthcare, academic, and government markets. Its Analytical Instruments segment provides instruments, consumables, software, and services for pharmaceutical, biotechnology, academic, government, environmental, and other research and industrial markets, as well as clinical laboratories. The company's Specialty Diagnostics segment offers liquid, ready-to-use, and lyophilized immunodiagnostic reagent kits, as well as calibrators, controls, protein detection assays, and instruments; immunodiagnostics develops, manufactures and markets complete bloodtest systems to support the clinical diagnosis and monitoring of allergy, asthma and autoimmune diseases; dehydrated and prepared culture media, collection and transport systems, instrumentation, and consumables; human leukocyte antigen typing and testing for organ transplant market; and healthcare products. Its Laboratory Products and Biopharma Services segment provides laboratory products, research and safety market channel, and pharma services and clinical research. It offers products and services through a direct sales force, customer-service professionals, electronic commerce, and third-party distributors under Thermo Scientific; Applied Biosystems; Invitrogen; Fisher Scientific; Unity Lab Services; and Patheon and PPD. Thermo Fisher Scientific Inc. was founded in 1956 and is headquartered in Waltham, Massachusetts.