Cantel Medical (CMD) & Luminex (LMNX) Financial Review

Cantel Medical (NYSE:CMD) and Luminex (NASDAQ:LMNX) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.

Profitability

This table compares Cantel Medical and Luminex’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cantel Medical 9.87% 16.73% 10.79%
Luminex 5.65% 5.99% 5.43%

Dividends

Cantel Medical pays an annual dividend of $0.17 per share and has a dividend yield of 0.2%. Luminex pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. Cantel Medical pays out 6.8% of its earnings in the form of a dividend. Luminex pays out 26.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Risk and Volatility

Cantel Medical has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500. Comparatively, Luminex has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500.

Institutional and Insider Ownership

85.0% of Cantel Medical shares are owned by institutional investors. Comparatively, 83.8% of Luminex shares are owned by institutional investors. 11.7% of Cantel Medical shares are owned by company insiders. Comparatively, 7.4% of Luminex shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and price targets for Cantel Medical and Luminex, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cantel Medical 0 0 2 0 3.00
Luminex 0 4 1 0 2.20

Cantel Medical currently has a consensus target price of $114.00, indicating a potential upside of 41.95%. Luminex has a consensus target price of $27.00, indicating a potential downside of 5.00%. Given Cantel Medical’s stronger consensus rating and higher possible upside, research analysts clearly believe Cantel Medical is more favorable than Luminex.

Valuation and Earnings

This table compares Cantel Medical and Luminex’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cantel Medical $871.92 million 3.84 $91.04 million $2.51 32.00
Luminex $306.57 million 4.13 $29.42 million $0.91 31.23

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

Summary

Cantel Medical beats Luminex on 14 of the 16 factors compared between the two stocks.

Cantel Medical Company Profile

Cantel Medical Corp. provides infection prevention and control products and services for the healthcare market. The company's Endoscopy segment offers automated endoscope reprocessing systems; infectants and sterilants; detergents; leak testing and manual cleaning products; storage cabinets, transport systems, and mobile medical carts; manual cleaning products; endoscope process tracking products; other consumables, accessories, and supplies for use in disinfect rigid endoscopes, flexible endoscopes, and other instrumentation; and technical maintenance services. Its Water Purification and Filtration segment provides dialysis water purification and bicarbonate mixing systems; hollow fiber filters, and other filtration and separation products; liquid disinfectants and cold sterilization products; dry fog products; room temperature sterilization equipment and services; and clean-room certification and decontamination services for the dialysis and other healthcare, research laboratory and pharmaceutical, food and beverage, and commercial industrial customers. The company's Healthcare Disposables segment offers biological indicators, chemical integrators, sterilization pouches, towels, bibs, tray liners, sponges, nitrous oxide/oxygen sedation equipment and related single-use disposable nasal masks, face masks, and shields. It also provides hand sanitizers, germicidal wipes, disinfectants, surface disinfectants, waterline treatment products, amalgam separators, saliva ejectors, evacuator tips, plastic cups, prophy angles, and prophy paste. The company's Dialysis segment provides hemodialysis concentrates and other ancillary supplies; medical device reprocessing systems; and sterilants and disinfectants. The company sells its products through its direct distribution network in the United States; and directly or under third-party distribution agreements internationally. Cantel Medical Corp. was founded in 1963 and is headquartered in Little Falls, New Jersey.

Luminex Company Profile

Luminex Corporation develops, manufactures, and sells proprietary biological testing technologies and products for the diagnostics, pharmaceutical, and research industries worldwide. Its products include Luminex 100/200 that integrates fluidics, optics, and digital signal processing; FLEXMAP 3D system for use as a general laboratory instrument; MAGPIX system, a multiplexing analyzer for qualitative and quantitative analysis of proteins and nucleic acids; ARIES system, a sample to answer real-time PCR platform; ARIES M1 system, a single-module version of the ARIES System; and VERIGENE system, an automated multiplex-capable system. The company also provides MicroPlex, MagPlex, xTAG, SeroMAP, and calibration and control microspheres; xPONENT, a software suite to simplify laboratory workflow and enhance productivity; SYNCT data management software solutions; and xTAG assays and products to identify the causative agent for respiratory and gastrointestinal infections, as well as IVD kits for cystic fibrosis genotyping and pharmacogenetic assays used to profile genetic mutations related to drug metabolism. In addition, it offers MultiCode assays and products comprising HSV 1&2 assays, analyte specific reagents, and other products to detect infectious agents in clinical samples; ARIES cassettes that are self-contained assay consumables, such as ARIES HSV 1&2 assays, ARIES FLU A/B and RSV assays, ARIES group B strep assays, ARIES group A strep assays, ARIES bordetella assays, and ARIES C. difficile assays; and VERIGENE test cartridges, as well as operates as an original equipment manufacturer of custom reagents and instrumentation. The company serves pharmaceutical companies, clinical laboratories, and research and medical institutions. Luminex Corporation was founded in 1995 and is based in Austin, Texas.

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