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 $257.5B against $162.7B — 1.6× the size. Thermo Fisher Scientific Inc. trades at the lower P/E: 37.1× against 40.5×. Thermo Fisher Scientific Inc. grew revenue faster over the last twelve months: 7.23% against 4.56%. Danaher Corporation has the higher net margin (16.0% vs 15.0%) and the lower return on invested capital (4.37% vs 5.80%). Both pay a dividend; Danaher Corporation yields more (0.66% vs 0.27%). Across the 23 metrics below, Danaher Corporation leads on 12 and Thermo Fisher Scientific Inc. on 11.

Valuation

Metric DHR TMO Diagnostics & Research median
P/E 40.53 37.06 35.56
P/S 6.43 5.52 4.37
P/B 3.07 4.86 3.06
Price to free cash flow 29.42 34.77 35.76
EV/EBITDA 23.66 26.25 24.35
EV/Sales 7.26 6.28 5.51
Earnings yield 2.47% 2.70% (1.89%)
Free cash flow yield 3.40% 2.88% (0.15%)

Profitability

Metric DHR TMO Diagnostics & Research median
Gross margin 58.51% 40.80% 50.89%
Operating margin 20.42% 17.58% (8.57%)
Net margin 15.95% 15.04% (6.37%)
Free cash flow margin 21.86% 15.89% 0.00%
Return on equity 7.63% 13.51% (2.92%)
Return on assets 4.60% 6.50% (6.71%)
Return on invested capital 4.37% 5.80% 0.00%

Growth

Metric DHR TMO Diagnostics & Research median
Revenue growth (TTM) 4.56% 7.23% 7.69%
EPS growth (last fiscal year) (4.54%) 7.32% 25.92%
Revenue growth, 5-year CAGR 1.97% 6.70% 7.40%
Net income growth, 5-year CAGR 0.59% 1.01% 0.00%

Health

Metric DHR TMO Diagnostics & Research median
Debt to equity 0.48 0.74 0.11
Current ratio 1.65 1.55 2.02
Net debt to EBITDA 1.93 2.45 0.70

Dividend

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

Size

Metric DHR TMO Diagnostics & Research median
Market cap 162.74b 257.53b 2.16b

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