Financial Review: Accelerate Diagnostics (AXDX) vs. Thermo Fisher Scientific (TMO)
Accelerate Diagnostics (NASDAQ: AXDX) and Thermo Fisher Scientific (NYSE:TMO) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.
Thermo Fisher Scientific pays an annual dividend of $0.60 per share and has a dividend yield of 0.3%. Accelerate Diagnostics does not pay a dividend. Thermo Fisher Scientific pays out 10.2% of its earnings in the form of a dividend.
Insider and Institutional Ownership
45.0% of Accelerate Diagnostics shares are owned by institutional investors. Comparatively, 83.7% of Thermo Fisher Scientific shares are owned by institutional investors. 50.0% of Accelerate Diagnostics shares are owned by company insiders. Comparatively, 0.5% of Thermo Fisher Scientific shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Accelerate Diagnostics and Thermo Fisher Scientific’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Accelerate Diagnostics||$250,000.00||4,155.00||-$66.37 million||($1.20)||-15.62|
|Thermo Fisher Scientific||$18.27 billion||4.09||$2.02 billion||$5.89||31.61|
Thermo Fisher Scientific has higher revenue and earnings than Accelerate Diagnostics. Accelerate Diagnostics 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.
Risk and Volatility
Accelerate Diagnostics has a beta of 2, suggesting that its share price is 100% more volatile than the S&P 500. Comparatively, Thermo Fisher Scientific has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.
This table compares Accelerate Diagnostics and Thermo Fisher Scientific’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Thermo Fisher Scientific||11.73%||15.94%||7.41%|
This is a summary of current ratings and recommmendations for Accelerate Diagnostics and Thermo Fisher Scientific, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Thermo Fisher Scientific||0||1||14||0||2.93|
Accelerate Diagnostics presently has a consensus price target of $33.00, suggesting a potential upside of 76.00%. Thermo Fisher Scientific has a consensus price target of $205.00, suggesting a potential upside of 10.11%. Given Accelerate Diagnostics’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Accelerate Diagnostics is more favorable than Thermo Fisher Scientific.
Thermo Fisher Scientific beats Accelerate Diagnostics on 9 of the 15 factors compared between the two stocks.
About Accelerate Diagnostics
Accelerate Diagnostics, Inc. is an in vitro diagnostics company engaged in providing solutions that develop patient outcomes through the diagnosis of serious infections. The Company’s in vitro diagnostic platform, the Accelerate Pheno system utilizes genotypic technology to identify (ID), infectious pathogens and phenotypic technology to conduct antibiotic susceptibility testing (AST), which determines whether live bacterial or fungal cells are resistant or susceptible to a particular antibiotic. It detects and identifies pathogens directly from a single patient sample followed by antimicrobial susceptibility testing based on the identification results. The Accelerate PhenoTest BC Kit provides ID and AST results for patients suspected of bacteremia or fungemia, both life-threatening conditions with high morbidity and mortality risk. The Accelerate Pheno system features walk-away automation and consists of a fixed instrument and single-use test kit.
About Thermo Fisher Scientific
Thermo Fisher Scientific Inc. develops, manufactures and sells a range of products. The Company provides analytical instruments, equipment, reagents and consumables, software and services for research, manufacturing, analysis, discovery and diagnostics. It operates through four segments: Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics, and Laboratory Products and Services. The Life Sciences Solutions segment provides a portfolio of reagents, instruments and consumables. The Analytical Instruments segment provides a range of instruments, consumables, software and services. The Specialty Diagnostics segment offers a range of diagnostic test kits, reagents, culture media, instruments and associated products. The Laboratory Products and Services segment offers controlled temperature technologies products, growth protection and separation products, and water and laboratory products.
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