Danaher (NYSE:DHR – Get Free Report) and Beauty Health (NASDAQ:SKIN – Get Free Report) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.
Risk and Volatility
Danaher has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Beauty Health has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.
Valuation and Earnings
This table compares Danaher and Beauty Health”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Danaher | $24.57 billion | 5.63 | $3.61 billion | $5.04 | 38.81 |
| Beauty Health | $334.30 million | 0.43 | -$29.10 million | ($0.22) | -5.18 |
Danaher has higher revenue and earnings than Beauty Health. Beauty Health is trading at a lower price-to-earnings ratio than Danaher, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
79.1% of Danaher shares are owned by institutional investors. Comparatively, 93.3% of Beauty Health shares are owned by institutional investors. 11.1% of Danaher shares are owned by insiders. Comparatively, 41.0% of Beauty Health shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Danaher and Beauty Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Danaher | 14.71% | 10.81% | 6.90% |
| Beauty Health | -3.87% | -19.70% | -1.97% |
Analyst Recommendations
This is a breakdown of current ratings and target prices for Danaher and Beauty Health, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Danaher | 0 | 3 | 20 | 0 | 2.87 |
| Beauty Health | 2 | 4 | 1 | 0 | 1.86 |
Danaher currently has a consensus target price of $253.86, indicating a potential upside of 29.78%. Beauty Health has a consensus target price of $2.40, indicating a potential upside of 110.53%. Given Beauty Health’s higher probable upside, analysts plainly believe Beauty Health is more favorable than Danaher.
Summary
Danaher beats Beauty Health on 10 of the 14 factors compared between the two stocks.
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.
About Beauty Health
The Beauty Health Company designs, develops, manufactures, markets, and sells aesthetic technologies and products worldwide. The company's flagship product includes HydraFacial that enhance the skin to cleanse, extract, and hydrate the skin with proprietary solutions and serums. Its products also comprise Syndeo, a Delivery System designs to connects providers to the consumer's preferences to create a more personalized experience; consumables, such as single-use tips, solutions, and serums used to provide a hydrafacial treatment; SkinStylus SteriLock Microsystem, a microneedling device used for the treatment of enhancing appearance of surgical or traumatic hypertrophic scars on the abdomen and facial acne scarring in Fitzpatrick skin types I, II, and III; and Keravive, a treatment for scalp health. The company was founded in 1997 and is headquartered in Long Beach, California.
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