Danaher (NYSE:DHR) and Ramsay Health Care (OTCMKTS:RMYHY) Critical Review

Ramsay Health Care (OTCMKTS:RMYHY) and Danaher (NYSE:DHR) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Dividends

Ramsay Health Care pays an annual dividend of $0.10 per share and has a dividend yield of 1.8%. Danaher pays an annual dividend of $1.28 per share and has a dividend yield of 0.6%. Danaher pays out 26.4% of its earnings in the form of a dividend. Danaher has increased its dividend for 2 consecutive years.

Valuation & Earnings

This table compares Ramsay Health Care and Danaher”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ramsay Health Care	N/A	N/A	N/A	N/A	N/A
Danaher	$23.88 billion	6.77	$3.90 billion	$4.85	47.21

Danaher has higher revenue and earnings than Ramsay Health Care.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Ramsay Health Care and Danaher, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ramsay Health Care	0	2	0	0	2.00
Danaher	0	5	21	0	2.81

Danaher has a consensus price target of $248.25, indicating a potential upside of 8.41%. Given Danaher’s stronger consensus rating and higher probable upside, analysts clearly believe Danaher is more favorable than Ramsay Health Care.

Insider & Institutional Ownership

79.1% of Danaher shares are owned by institutional investors. 11.1% of Danaher shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Ramsay Health Care has a beta of 0.05, suggesting that its stock price is 95% less volatile than the S&P 500. Comparatively, Danaher has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.

Profitability

This table compares Ramsay Health Care and Danaher’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ramsay Health Care	N/A	N/A	N/A
Danaher	14.44%	10.92%	6.99%

Summary

Danaher beats Ramsay Health Care on 11 of the 13 factors compared between the two stocks.

About Ramsay Health Care

Ramsay Health Care Limited owns and operates hospitals. The company offers health care services to public and private patients. It operates facilities in approximately 530 locations in the Asia Pacific, the United Kingdom, France, and Nordics. Ramsay Health Care Limited was founded in 1964 and is based in Sydney, Australia.

About Danaher

Danaher Corporation designs, manufactures, and markets professional, medical, industrial, and commercial products and services worldwide. The Biotechnology segments offers bioprocess technologies, consumables, and services that advance, accelerate, and integrate the development and manufacture of therapeutics; cell line and cell culture media development services; cell culture media, process liquids and buffers for manufacturing, chromatography resins, filtration technologies, aseptic fill finish; single-use hardware and consumables and services, such as the design and installation of full manufacturing suites; lab filtration, separation, and purification; lab-scale protein purification and analytical tools; reagents, membranes, and services; and healthcare filtration solutions. The Life Sciences segment provides mass spectrometers; flow cytometry, genomics, lab automation, centrifugation, liquid handling automation instruments, antibodies and reagents, and particle counting and characterization; microscopes; protein consumables; industrial filtration products; and genomic medicines, such as custom nucleic acid products, plasmid DNA, RNA, and proteins under the ABCAM, ALDEVRON, BECKMAN COULTER, IDT, LEICA MICROSYSTEMS, MOLECULAR DEVICES, PALL, PHENOMENEX and SCIEX brands. The Diagnostics segment offers chemistry, immunoassay, microbiology, and automation systems; and molecular, acute care, and pathology diagnostics products. This segment also provides clinical instruments, reagents, consumables, software, and services for hospitals, physicians' offices, reference laboratories, and other critical care settings. The company was formerly known as Diversified Mortgage Investors, Inc. and changed its name to Danaher Corporation in 1984. Danaher Corporation was founded in 1969 and is based in Washington, the District of Columbia.