Neovasc (NASDAQ: NVCN) and Thermo Fisher Scientific (NYSE:TMO) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Institutional & Insider Ownership

19.4% of Neovasc shares are held by institutional investors. Comparatively, 83.8% of Thermo Fisher Scientific shares are held by institutional investors. 0.5% of Thermo Fisher Scientific shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Neovasc and Thermo Fisher Scientific, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Neovasc 0 0 3 0 3.00
Thermo Fisher Scientific 0 1 14 0 2.93

Neovasc presently has a consensus target price of $6.33, suggesting a potential upside of 503.17%. Thermo Fisher Scientific has a consensus target price of $205.00, suggesting a potential upside of 10.11%. Given Neovasc’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Neovasc is more favorable than Thermo Fisher Scientific.

Dividends

Thermo Fisher Scientific pays an annual dividend of $0.60 per share and has a dividend yield of 0.3%. Neovasc does not pay a dividend. Thermo Fisher Scientific pays out 10.2% of its earnings in the form of a dividend.

Volatility and Risk

Neovasc has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500. Comparatively, Thermo Fisher Scientific has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.

Valuation and Earnings

This table compares Neovasc and Thermo Fisher Scientific’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Neovasc $9.51 million 8.71 -$86.49 million ($0.14) -7.50
Thermo Fisher Scientific $18.27 billion 4.09 $2.02 billion $5.89 31.61

Thermo Fisher Scientific has higher revenue and earnings than Neovasc. Neovasc 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Neovasc -68.34% -58.08% 23.23%
Thermo Fisher Scientific 11.73% 15.94% 7.41%

Summary

Thermo Fisher Scientific beats Neovasc on 11 of the 16 factors compared between the two stocks.

Neovasc Company Profile

Neovasc Inc. (Neovasc) is a specialty medical device company. The Company develops, manufactures and markets products for the cardiovascular marketplace. The Company’s segment is the development, manufacture and marketing of medical devices. Its products include the Tiara technology in development for the transcatheter treatment of mitral valve disease, the Neovasc Reducer for the treatment of refractory angina, and tissue products. The Tiara is in preclinical/early clinical stage development to provide a minimally invasive transcatheter device for patients experiencing mitral regurgitation (MR) as a result of mitral heart valve disease. The Reducer is an hourglass-shaped, balloon-expandable, stainless steel, bare metal device, which is implanted in the coronary sinus, creating a restriction in venous outflow from the myocardium (the muscular layer of the heart wall). Neovasc produces Peripatch, a biological tissue product that is manufactured from pericardium.

Thermo Fisher Scientific Company Profile

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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