IRIDEX Corporation (IRIX) and Thermo Fisher Scientific (TMO) Financial Review

IRIDEX Corporation (NASDAQ: IRIX) and Thermo Fisher Scientific (NYSE:TMO) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
IRIDEX Corporation $42.80 million 2.64 -$5.81 million ($1.51) -6.48
Thermo Fisher Scientific $19.20 billion 3.93 $4.81 billion $5.74 33.71

Thermo Fisher Scientific has higher revenue and earnings than IRIDEX Corporation. IRIDEX Corporation 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.

Dividends

Thermo Fisher Scientific pays an annual dividend of $0.60 per share and has a dividend yield of 0.3%. IRIDEX Corporation does not pay a dividend. Thermo Fisher Scientific pays out 10.5% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
IRIDEX Corporation -37.62% -16.87% -13.86%
Thermo Fisher Scientific 11.80% 15.97% 7.48%

Risk & Volatility

IRIDEX Corporation has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, Thermo Fisher Scientific has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.

Insider and Institutional Ownership

47.5% of IRIDEX Corporation shares are held by institutional investors. Comparatively, 83.4% of Thermo Fisher Scientific shares are held by institutional investors. 5.0% of IRIDEX Corporation shares are held by company insiders. Comparatively, 0.5% of Thermo Fisher Scientific shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for IRIDEX Corporation and Thermo Fisher Scientific, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IRIDEX Corporation 0 0 1 0 3.00
Thermo Fisher Scientific 0 1 14 0 2.93

IRIDEX Corporation currently has a consensus price target of $20.00, suggesting a potential upside of 104.50%. Thermo Fisher Scientific has a consensus price target of $201.46, suggesting a potential upside of 4.11%. Given IRIDEX Corporation’s stronger consensus rating and higher possible upside, equities research analysts plainly believe IRIDEX Corporation is more favorable than Thermo Fisher Scientific.

Summary

Thermo Fisher Scientific beats IRIDEX Corporation on 10 of the 15 factors compared between the two stocks.

IRIDEX Corporation Company Profile

IRIDEX Corporation is a provider of therapeutic based laser consoles, delivery devices and consumable instrumentation used to treat sight-threatening eye diseases in ophthalmology. The Company operates through ophthalmology segment. Its ophthalmology products consist of laser consoles, delivery devices and consumable instrumentation, including laser probes, and are used in the treatment of serious eye diseases, including the over three causes of irreversible blindness, such as diabetic retinopathy, glaucoma and age-related macular degeneration (AMD). In addition, the Company’s ophthalmology products are often used in vitrectomy procedures (used to treat proliferative diabetic retinopathy, macular holes, retinal tears and detachments), which are generally performed in the operating room and require a consumable single use intraocular laser probe (EndoProbe) to deliver light to the back of the eye together with other instrumentation.

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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