Financial Comparison: PerkinElmer (PKI) and Thoratec (NASDAQ:THOR)

Thoratec (NASDAQ: THOR) and PerkinElmer (NYSE:PKI) are both healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, earnings, profitability and risk.

Profitability

This table compares Thoratec and PerkinElmer’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Thoratec 10.29% 8.02% 6.71%
PerkinElmer 18.27% 13.11% 6.82%

Valuation and Earnings

This table compares Thoratec and PerkinElmer’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Thoratec N/A N/A N/A $0.70 N/A
PerkinElmer $2.12 billion 4.11 $234.29 million $3.60 21.91

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

Insider and Institutional Ownership

91.4% of PerkinElmer shares are owned by institutional investors. 2.2% of PerkinElmer shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

PerkinElmer pays an annual dividend of $0.28 per share and has a dividend yield of 0.4%. Thoratec does not pay a dividend. PerkinElmer pays out 7.8% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent recommendations for Thoratec and PerkinElmer, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Thoratec 0 0 0 0 N/A
PerkinElmer 1 9 5 0 2.27

PerkinElmer has a consensus price target of $71.23, suggesting a potential downside of 9.71%.

Summary

PerkinElmer beats Thoratec on 9 of the 10 factors compared between the two stocks.

Thoratec Company Profile

Thoratec Corporation develops, manufactures and markets medical devices used for mechanical circulatory support for the treatment of heart failure patients. The Company’s products include ventricular assist devices (VADs), such as HeartMate II Left Ventricular Assist System (HeartMate II), HeartMate III Left Ventricular Assist System, Thoratec Paracorporeal Ventricular Assist Device (PVAD) and Thoratec Implantable Ventricular Assist Device (IVAD). For acute circulatory support, the Company’s product lines are CentriMag Acute Circulatory System (CentriMag) and for pediatric patients PediMag/PediVAS Acute Circulatory System (PediMag/PediVAS). HeartMate III, a centrifugal-flow, chronic, left ventricular assist system.

PerkinElmer Company Profile

PerkinElmer, Inc. is a provider of products, services and solutions to the diagnostics, research, environmental, industrial and laboratory services markets. The Company operates through two segments: Discovery & Analytical Solutions and Diagnostics. The Discovery & Analytical Solutions segment serves the environmental, food, industrial, life sciences research and laboratory services markets. It provides analytical instrumentation for the industrial market, which includes the chemical, electronics, energy, lubricant, petrochemical and polymer industries. Its products include AAnalyst, Altus, Aquamatic, Avio, AxION, Clarus, DairyGuard, AlphaLISA, AlphaPlex, AlphaScreen, Alpha SureFire, Cell carrier and cell::explorer. The Diagnostics segment is focused on reproductive health, emerging market diagnostics and applied genomics. Its products include AutoDELFIA, BACS-on-Beads, Bioo Scientific, BoBs, Datalytix, Dexela, Dexela CMOS FPDs, Evolution, ViaCord, and Zephyr.

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