Critical Survey: Luminex Corporation (LMNX) and Alere (ALR)
Luminex Corporation (NASDAQ: LMNX) and Alere (NYSE:ALR) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.
This table compares Luminex Corporation and Alere’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Luminex Corporation and Alere’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Luminex Corporation||$297.73 million||2.92||$49.82 million||$0.32||61.66|
|Alere||$2.32 billion||1.88||$261.20 million||($2.45)||-20.31|
Alere has higher revenue and earnings than Luminex Corporation. Alere is trading at a lower price-to-earnings ratio than Luminex Corporation, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
78.0% of Luminex Corporation shares are held by institutional investors. Comparatively, 88.8% of Alere shares are held by institutional investors. 6.9% of Luminex Corporation shares are held by company insiders. Comparatively, 3.7% of Alere shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
Luminex Corporation has a beta of 0.27, suggesting that its share price is 73% less volatile than the S&P 500. Comparatively, Alere has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500.
This is a summary of recent ratings and recommmendations for Luminex Corporation and Alere, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Luminex Corporation currently has a consensus price target of $21.25, suggesting a potential upside of 7.70%. Alere has a consensus price target of $48.00, suggesting a potential downside of 3.54%. Given Luminex Corporation’s higher probable upside, research analysts clearly believe Luminex Corporation is more favorable than Alere.
Luminex Corporation pays an annual dividend of $0.24 per share and has a dividend yield of 1.2%. Alere does not pay a dividend. 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.
Luminex Corporation beats Alere on 11 of the 15 factors compared between the two stocks.
About Luminex Corporation
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.
Alere Inc. is a provider of health information through diagnostic tests. The Company’s segments include professional diagnostics, consumer diagnostics, and corporate and other. The professional diagnostics segment includes an array of diagnostic test products and other in vitro diagnostic tests marketed to medical professionals and laboratories for detection of diseases and conditions within its areas of focus. The consumer diagnostics segment consists primarily of manufacturing operations related to its role as the exclusive manufacturer of products for SPD Swiss Precision Diagnostics (SPD), its joint venture with The Procter & Gamble Company (P&G). The Company’s professional diagnostic solutions allow patients and their healthcare providers to work together to manage patients’ conditions over the continuum of care, from the hospital to home. The Company offers lines of drugs-of-abuse tests, reagent systems and laboratory testing options.
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