Bio-Rad Laboratories (NYSE: BIO) and Palomar Medical Technologies (NASDAQ:PMTI) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.
Risk and Volatility
Bio-Rad Laboratories has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Palomar Medical Technologies has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500.
This table compares Bio-Rad Laboratories and Palomar Medical Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Palomar Medical Technologies||N/A||N/A||N/A|
This is a summary of recent ratings and recommmendations for Bio-Rad Laboratories and Palomar Medical Technologies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Palomar Medical Technologies||0||0||0||0||N/A|
Bio-Rad Laboratories currently has a consensus price target of $273.33, suggesting a potential upside of 9.75%. Given Bio-Rad Laboratories’ higher probable upside, analysts clearly believe Bio-Rad Laboratories is more favorable than Palomar Medical Technologies.
Earnings and Valuation
This table compares Bio-Rad Laboratories and Palomar Medical Technologies’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Bio-Rad Laboratories||$2.07 billion||3.58||$28.12 million||$0.79||315.24|
|Palomar Medical Technologies||N/A||N/A||N/A||($0.27)||-49.67|
Bio-Rad Laboratories has higher revenue and earnings than Palomar Medical Technologies. Palomar Medical Technologies is trading at a lower price-to-earnings ratio than Bio-Rad Laboratories, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
64.1% of Bio-Rad Laboratories shares are held by institutional investors. 28.3% of Bio-Rad Laboratories shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Bio-Rad Laboratories beats Palomar Medical Technologies on 10 of the 11 factors compared between the two stocks.
About Bio-Rad Laboratories
Bio-Rad Laboratories, Inc. (Bio-Rad) is a manufacturer and distributor of its life science research and clinical diagnostics products. The Company operates through two segments: Life Science and Clinical Diagnostics. It manufactures and supplies the life science research, healthcare, analytical chemistry and other markets with a range of products and systems used to separate complex chemical and biological materials and to identify, analyze and purify their components. The Life Science segment develops, manufactures, sells and services reagents, apparatus and instruments used for biological research. The Clinical Diagnostics segment develops, manufactures, sells and services automated test systems, informatics systems, test kits and specialized quality controls for the healthcare market. As of December 31, 2016, Bio-Rad sold more than 8,000 products and services to a client base, including scientific research, healthcare, education and government customers around the world.
About Palomar Medical Technologies
Palomar Medical Technologies, Inc. (Palomar) is a researcher and developer of aesthetic light-based systems for hair removal and other cosmetic procedures, including both lasers and high powered lamps. The Company offers a range of products based on technologies that include, but are not limited to: hair removal; body sculpting, including laser-assisted liposuction; removal of vascular lesions, such as rosacea, spider veins, port wine stains and hemangiomas; wrinkle reduction; removal of leg veins; removal of benign pigmented lesions, such as age and sun spots, freckles and melasma; tattoo removal; acne treatment; skin resurfacing, pseudofolliculitis barbae (PFB) treatment; treatment of red pigmentation in hypertrophic and keloid scars; treatment of verrucae, skin tags and seborrheic keratosis; skin tightening through soft tissue coagulation; scars, and other skin treatments. In June 2013, Cynosure Inc announced the completion of its acquisition of Palomar Medical Technologies Inc.
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