Critical Survey: VWR (VWR) and Neogen (NEOG)

VWR (NASDAQ: VWR) and Neogen (NASDAQ:NEOG) are both mid-cap healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.

Earnings & Valuation

This table compares VWR and Neogen’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
VWR $4.51 billion 0.97 $148.20 million $1.14 29.17
Neogen $361.59 million 8.43 $43.79 million $1.00 59.20

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for VWR and Neogen, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
VWR 0 2 1 0 2.33
Neogen 0 4 0 0 2.00

VWR currently has a consensus price target of $29.00, suggesting a potential downside of 12.78%. Neogen has a consensus price target of $61.33, suggesting a potential upside of 3.60%. Given Neogen’s higher probable upside, analysts clearly believe Neogen is more favorable than VWR.

Institutional and Insider Ownership

96.7% of VWR shares are owned by institutional investors. Comparatively, 87.0% of Neogen shares are owned by institutional investors. 35.5% of VWR shares are owned by insiders. Comparatively, 4.2% of Neogen shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares VWR and Neogen’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
VWR 4.11% 11.79% 3.67%
Neogen 13.47% 10.72% 9.57%

Summary

VWR beats Neogen on 8 of the 13 factors compared between the two stocks.

About VWR

VWR Corporation is a provider of product and service solutions to laboratory and production customers. The Company offers a portfolio of branded and private label laboratory products, services and solutions to the life science, general research and applied markets. The Company operates in two segments: Americas and EMEA-APAC. The Americas segment consists of operations located principally in the United States and Canada, as well as in Puerto Rico, Mexico and select countries in Central and South America, including Costa Rica, Brazil, Argentina and Chile. As of December 31, 2016, the Americas segment included 67 facilities located in eight countries. As of December 31, 2016, the EMEA-APAC segment consisted of its operations located principally in Europe, as well as in certain Asia-Pacific countries, and included 110 facilities located in 26 countries. The Company’s portfolio includes chemicals, reagents, consumables, durable products and scientific equipment and instruments.

About Neogen

Neogen Corporation develops, manufactures and markets a range of products and services dedicated to food and animal safety. The Company operates through two segments: Food Safety and Animal Safety. The Food Safety segment produces and markets diagnostic test kits and related products used by food producers and processors to detect harmful natural toxins, foodborne bacteria, allergens and levels of general sanitation. The Animal Safety segment is primarily engaged in the production and marketing of products dedicated to animal health, including a range of consumable products marketed to veterinarians and animal health product distributors. The Animal Safety segment also provides genetic identification services. Additionally, the Animal Safety segment produces and markets rodenticides, disinfectants and insecticides to assist in the control of rodents and disease in and around agricultural, food production and other facilities.

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