Critical Survey: Oncology Institute (NASDAQ:TOI) versus Danaher (NYSE:DHR)

Oncology Institute (NASDAQ:TOI) and Danaher (NYSE:DHR) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Volatility and Risk

Oncology Institute has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500. Comparatively, Danaher has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500.

Insider and Institutional Ownership

36.9% of Oncology Institute shares are owned by institutional investors. Comparatively, 79.1% of Danaher shares are owned by institutional investors. 4.4% of Oncology Institute shares are owned by insiders. Comparatively, 10.8% of Danaher shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Oncology Institute and Danaher”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oncology Institute	$502.73 million	0.98	-$60.61 million	($0.37)	-13.54
Danaher	$24.57 billion	5.13	$3.61 billion	$5.17	34.47

Danaher has higher revenue and earnings than Oncology Institute. Oncology Institute is trading at a lower price-to-earnings ratio than Danaher, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Oncology Institute and Danaher, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oncology Institute	1	0	4	0	2.60
Danaher	0	5	19	1	2.84

Oncology Institute currently has a consensus target price of $7.75, suggesting a potential upside of 54.69%. Danaher has a consensus target price of $233.61, suggesting a potential upside of 31.08%. Given Oncology Institute’s higher probable upside, analysts plainly believe Oncology Institute is more favorable than Danaher.

Profitability

This table compares Oncology Institute and Danaher’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oncology Institute	-7.42%	N/A	-24.68%
Danaher	14.89%	10.91%	6.94%

Summary

Danaher beats Oncology Institute on 14 of the 15 factors compared between the two stocks.

About Oncology Institute

The Oncology Institute, Inc., an oncology company, provides various medical oncology services in the United States. The company operates through three segments: Dispensary, Patient Services, and Clinical Trials & Other. It offers physician services, in-house infusion and dispensary, clinical trial, radiation, outpatient blood product transfusion, and patient support services, as well as educational seminars, support groups, and counseling services. The company also provides managing clinical trials, palliative care programs, stem cell transplants services, and other care delivery models associated with non-community-based academic and tertiary care settings; and conducts clinical trials for a range of pharmaceutical and medical device companies. It serves adult and senior cancer patients. The company has a strategic collaboration with Healthly Forge to offer cancer care services to patients in Southern California. The Oncology Institute, Inc. was founded in 2007 and is headquartered in Cerritos, California.

About Danaher

Danaher Corporation designs, manufactures, and markets professional, medical, industrial, and commercial products and services worldwide. The Biotechnology segments offers bioprocess technologies, consumables, and services that advance, accelerate, and integrate the development and manufacture of therapeutics; cell line and cell culture media development services; cell culture media, process liquids and buffers for manufacturing, chromatography resins, filtration technologies, aseptic fill finish; single-use hardware and consumables and services, such as the design and installation of full manufacturing suites; lab filtration, separation, and purification; lab-scale protein purification and analytical tools; reagents, membranes, and services; and healthcare filtration solutions. The Life Sciences segment provides mass spectrometers; flow cytometry, genomics, lab automation, centrifugation, liquid handling automation instruments, antibodies and reagents, and particle counting and characterization; microscopes; protein consumables; industrial filtration products; and genomic medicines, such as custom nucleic acid products, plasmid DNA, RNA, and proteins under the ABCAM, ALDEVRON, BECKMAN COULTER, IDT, LEICA MICROSYSTEMS, MOLECULAR DEVICES, PALL, PHENOMENEX and SCIEX brands. The Diagnostics segment offers chemistry, immunoassay, microbiology, and automation systems; and molecular, acute care, and pathology diagnostics products. This segment also provides clinical instruments, reagents, consumables, software, and services for hospitals, physicians' offices, reference laboratories, and other critical care settings. The company was formerly known as Diversified Mortgage Investors, Inc. and changed its name to Danaher Corporation in 1984. Danaher Corporation was founded in 1969 and is based in Washington, the District of Columbia.