Head to Head Contrast: Thermo Fisher Scientific (TMO) and Intuitive Surgical (ISRG)
Thermo Fisher Scientific (NYSE: TMO) and Intuitive Surgical (NASDAQ:ISRG) are both large-cap healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.
Thermo Fisher Scientific pays an annual dividend of $0.60 per share and has a dividend yield of 0.3%. Intuitive Surgical does not pay a dividend. Thermo Fisher Scientific pays out 10.2% of its earnings in the form of a dividend.
This is a breakdown of current ratings and target prices for Thermo Fisher Scientific and Intuitive Surgical, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Thermo Fisher Scientific||0||1||14||0||2.93|
Thermo Fisher Scientific currently has a consensus price target of $208.92, suggesting a potential upside of 6.31%. Intuitive Surgical has a consensus price target of $336.07, suggesting a potential downside of 11.56%. Given Thermo Fisher Scientific’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Thermo Fisher Scientific is more favorable than Intuitive Surgical.
This table compares Thermo Fisher Scientific and Intuitive Surgical’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%|
Institutional and Insider Ownership
86.2% of Thermo Fisher Scientific shares are held by institutional investors. Comparatively, 32.8% of Intuitive Surgical shares are held by institutional investors. 0.5% of Thermo Fisher Scientific shares are held by insiders. Comparatively, 2.2% of Intuitive Surgical shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk & Volatility
Thermo Fisher Scientific has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, Intuitive Surgical has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.
Valuation & Earnings
This table compares Thermo Fisher Scientific and Intuitive Surgical’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Thermo Fisher Scientific||$18.27 billion||4.31||$2.02 billion||$5.89||33.37|
|Intuitive Surgical||$2.70 billion||15.74||$735.90 million||$7.74||49.09|
Thermo Fisher Scientific has higher revenue and earnings than Intuitive Surgical. Thermo Fisher Scientific is trading at a lower price-to-earnings ratio than Intuitive Surgical, indicating that it is currently the more affordable of the two stocks.
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.
Intuitive Surgical Company Profile
Intuitive Surgical, Inc. (Intuitive) designs, manufactures and markets da Vinci Surgical Systems, and related instruments and accessories. The Company’s da Vinci Surgical System consists of a surgeon’s console, a patient-side cart and a vision system. The da Vinci Surgical System translates a surgeon’s hand movements, which are performed on instrument controls at a console, into corresponding micro-movements of instruments positioned inside the patient through small incisions or ports. The da Vinci Surgical System provides its operating surgeons with control, range of motion, tissue manipulation capability and three-dimensional (3-D), high-definition (HD) vision. Intuitive has four generations of da Vinci Surgical System: the da Vinci Xi Surgical System, the da Vinci Si Surgical System, the da Vinci S Surgical System and the standard da Vinci Surgical System. The Company’s instruments and accessories include EndoWrist Instruments and da Vinci Single-Site.
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