Danaher Corporation (DHR) vs Thermo Fisher Scientific Inc. (TMO)

Danaher Corporation and Thermo Fisher Scientific Inc. are both Diagnostics & Research companies. Thermo Fisher Scientific Inc. is the larger, with a market value of $250.8B against $159.2B — 1.6× the size. Thermo Fisher Scientific Inc. trades at the lower P/E: 36.5× against 37.5×. Thermo Fisher Scientific Inc. grew revenue faster over the last twelve months: 8.27% against 5.52%. Danaher Corporation has the higher net margin (16.9% vs 14.9%) and the lower return on invested capital (4.51% vs 6.03%). Both pay a dividend; Danaher Corporation yields more (0.66% vs 0.27%). Across the 23 metrics below, Thermo Fisher Scientific Inc. leads on 12 and Danaher Corporation on 11.

Valuation

Metric DHR TMO Diagnostics & Research median
P/E 37.52 36.49 35.23
P/S 6.31 5.42 4.08
P/B 3.01 4.68 3.45
Price to free cash flow 28.10 33.58 33.72
EV/EBITDA 22.60 25.01 25.01
EV/Sales 7.04 6.11 5.20
Earnings yield 2.66% 2.74% (1.47%)
Free cash flow yield 3.56% 2.98% 0.00%

Profitability

Metric DHR TMO Diagnostics & Research median
Gross margin 58.59% 41.21% 48.32%
Operating margin 20.38% 17.89% (5.68%)
Net margin 16.91% 14.94% (4.10%)
Free cash flow margin 22.46% 16.13% 0.00%
Return on equity 8.27% 13.37% 0.00%
Return on assets 5.00% 6.51% (6.05%)
Return on invested capital 4.51% 6.03% 0.00%

Growth

Metric DHR TMO Diagnostics & Research median
Revenue growth (TTM) 5.52% 8.27% 9.15%
EPS growth (last fiscal year) (4.54%) 7.32% 20.36%
Revenue growth, 5-year CAGR 1.97% 6.70% 7.30%
Net income growth, 5-year CAGR 0.59% 1.01% 0.00%

Health

Metric DHR TMO Diagnostics & Research median
Debt to equity 0.45 0.71 0.04
Current ratio 1.63 1.81 2.27
Net debt to EBITDA 1.93 2.45 0.68

Dividend

Metric DHR TMO Diagnostics & Research median
Dividend yield 0.66% 0.27% 0.66%
Payout ratio 0.25 0.10 0.20

Size

Metric DHR TMO Diagnostics & Research median
Market cap 159.24b 250.82b 1.93b

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