Thermo Fisher Scientific (NYSE:TMO – Get Free Report) and Masimo (NASDAQ:MASI – Get Free Report) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, dividends, valuation and profitability.
Insider & Institutional Ownership
89.2% of Thermo Fisher Scientific shares are owned by institutional investors. Comparatively, 86.0% of Masimo shares are owned by institutional investors. 0.3% of Thermo Fisher Scientific shares are owned by company insiders. Comparatively, 16.9% of Masimo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Thermo Fisher Scientific and Masimo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Thermo Fisher Scientific | 15.19% | 17.15% | 8.47% |
| Masimo | -25.06% | 22.56% | 10.00% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Thermo Fisher Scientific | $42.88 billion | 3.70 | $6.34 billion | $17.05 | 24.67 |
| Masimo | $2.09 billion | 4.41 | -$304.90 million | ($9.17) | -18.56 |
Thermo Fisher Scientific has higher revenue and earnings than Masimo. Masimo 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
Thermo Fisher Scientific has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Masimo has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Thermo Fisher Scientific and Masimo, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Thermo Fisher Scientific | 0 | 4 | 16 | 0 | 2.80 |
| Masimo | 0 | 1 | 5 | 0 | 2.83 |
Thermo Fisher Scientific currently has a consensus price target of $604.05, suggesting a potential upside of 43.62%. Masimo has a consensus price target of $191.60, suggesting a potential upside of 12.58%. Given Thermo Fisher Scientific’s higher probable upside, equities research analysts clearly believe Thermo Fisher Scientific is more favorable than Masimo.
Summary
Thermo Fisher Scientific beats Masimo on 8 of the 14 factors compared between the two stocks.
About Thermo Fisher Scientific
Thermo Fisher Scientific Inc. provides life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and biopharma services in the North America, Europe, Asia-Pacific, and internationally. The company's Life Sciences Solutions segment offers reagents, instruments, and consumables for biological and medical research, discovery, and production of drugs and vaccines, as well as diagnosis of infections and diseases; and solutions include biosciences, genetic sciences, and bio production to pharmaceutical, biotechnology, agricultural, clinical, healthcare, academic, and government markets. Its Analytical Instruments segment provides instruments, consumables, software, and services for pharmaceutical, biotechnology, academic, government, environmental, and other research and industrial markets, as well as clinical laboratories. The company's Specialty Diagnostics segment offers liquid, ready-to-use, and lyophilized immunodiagnostic reagent kits, as well as calibrators, controls, protein detection assays, and instruments; immunodiagnostics develops, manufactures and markets complete bloodtest systems to support the clinical diagnosis and monitoring of allergy, asthma and autoimmune diseases; dehydrated and prepared culture media, collection and transport systems, instrumentation, and consumables; human leukocyte antigen typing and testing for organ transplant market; and healthcare products. Its Laboratory Products and Biopharma Services segment provides laboratory products, research and safety market channel, and pharma services and clinical research. It offers products and services through a direct sales force, customer-service professionals, electronic commerce, and third-party distributors under Thermo Scientific; Applied Biosystems; Invitrogen; Fisher Scientific; Unity Lab Services; and Patheon and PPD. Thermo Fisher Scientific Inc. was founded in 1956 and is headquartered in Waltham, Massachusetts.
About Masimo
Masimo Corporation develops, manufactures, and markets various patient monitoring technologies, and automation and connectivity solutions worldwide. The company offers masimo signal extraction technology (SET) pulse oximetry with measure-through motion and low perfusion pulse oximetry monitoring to address the primary limitations of conventional pulse oximetry; Masimo rainbow SET platform, including rainbow SET Pulse CO-Oximetry products that allows noninvasive monitoring of carboxyhemoglobin, methemoglobin, hemoglobin concentration, fractional arterial oxygen saturation, oxygen content, pleth variability index, rainbow pleth variability index, respiration rate from the pleth, and oxygen reserve index, as well as acoustic respiration monitoring, SedLine brain function monitoring, NomoLine capnography and gas monitoring, and regional oximetry. It also provides brain function and hemodynamic monitoring solutions; patient position and activity tracking, and neuromodulation technology solutions; and Masimo Hospital Automation platform, including hospital automation solutions, including Patient SafetyNet, Patient SafetyNet Surveillance, SafetyNet, Replica, Iris, MyView, UniView, Uniview: 60, Masimo Sleep, Centroid, and Bridg; and nasal high-flow ventilation, neuromodulation therapeutics, and telehealth solutions. In addition, the company provides its products through direct sales force, distributors, and original equipment manufacturers partners to hospitals, emergency medical service and home care providers, long-term care facilities, physician offices, veterinarians, and consumers; and home wellness products through e-commerce internet sites, such as masimopersonalhealth.com, amazon.com, and shopify.com. Masimo Corporation was incorporated in 1989 and is headquartered in Irvine, California.
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