Contrasting DarioHealth (NASDAQ:DRIO) & Thermo Fisher Scientific (NYSE:TMO)

DarioHealth (NASDAQ:DRIO) and Thermo Fisher Scientific (NYSE:TMO) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.

Insider and Institutional Ownership

33.4% of DarioHealth shares are owned by institutional investors. Comparatively, 89.2% of Thermo Fisher Scientific shares are owned by institutional investors. 3.5% of DarioHealth shares are owned by insiders. Comparatively, 0.3% of Thermo Fisher Scientific shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares DarioHealth and Thermo Fisher Scientific’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DarioHealth	-186.57%	-59.48%	-36.94%
Thermo Fisher Scientific	15.05%	16.92%	8.36%

Analyst Recommendations

This is a breakdown of recent ratings for DarioHealth and Thermo Fisher Scientific, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DarioHealth	1	1	2	0	2.25
Thermo Fisher Scientific	0	2	19	1	2.95

DarioHealth currently has a consensus target price of $35.00, indicating a potential upside of 336.41%. Thermo Fisher Scientific has a consensus target price of $632.50, indicating a potential upside of 28.54%. Given DarioHealth’s higher probable upside, equities analysts plainly believe DarioHealth is more favorable than Thermo Fisher Scientific.

Valuation and Earnings

This table compares DarioHealth and Thermo Fisher Scientific”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DarioHealth	$22.36 million	2.62	-$41.71 million	($10.43)	-0.77
Thermo Fisher Scientific	$44.56 billion	4.10	$6.70 billion	$17.74	27.74

Thermo Fisher Scientific has higher revenue and earnings than DarioHealth. DarioHealth is trading at a lower price-to-earnings ratio than Thermo Fisher Scientific, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

DarioHealth has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Thermo Fisher Scientific has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Summary

Thermo Fisher Scientific beats DarioHealth on 12 of the 15 factors compared between the two stocks.

About DarioHealth

DarioHealth Corp. operates as a digital health company in the United States, Canada, the European Union, Australia, and New Zealand. Its digital therapeutics platform and suite of solutions deliver personalized and dynamic interventions driven by data analytics and one-on-one coaching for diabetes, hypertension, weight management, musculoskeletal pain, and behavioral health. The company offers Dario Evolve, a metabolic solution to address metabolic health needs, such as diabetes, pre-diabetes, hypertension, and weight management; Dario Move, which address most common musculoskeletal conditions; Dario Elevate, a behavioral health solution that optimizes access to evidence-based care; and Dario One, a full suite of chronic condition management solution; and Dario blood glucose monitoring systems. It also provides native devices, such as glucose meter, blood pressure cuff, digital scale, and biofeedback sensor device, as well as live coaching services. The company was formerly known as LabStyle Innovations Corp. and changed its name to DarioHealth Corp. in July 2016. DarioHealth Corp. was incorporated in 2011 and is based in New York, New York.

About Thermo Fisher Scientific

Thermo Fisher Scientific Inc. provides life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and biopharma services in the North America, Europe, Asia-Pacific, and internationally. The company's Life Sciences Solutions segment offers reagents, instruments, and consumables for biological and medical research, discovery, and production of drugs and vaccines, as well as diagnosis of infections and diseases; and solutions include biosciences, genetic sciences, and bio production to pharmaceutical, biotechnology, agricultural, clinical, healthcare, academic, and government markets. Its Analytical Instruments segment provides instruments, consumables, software, and services for pharmaceutical, biotechnology, academic, government, environmental, and other research and industrial markets, as well as clinical laboratories. The company's Specialty Diagnostics segment offers liquid, ready-to-use, and lyophilized immunodiagnostic reagent kits, as well as calibrators, controls, protein detection assays, and instruments; immunodiagnostics develops, manufactures and markets complete bloodtest systems to support the clinical diagnosis and monitoring of allergy, asthma and autoimmune diseases; dehydrated and prepared culture media, collection and transport systems, instrumentation, and consumables; human leukocyte antigen typing and testing for organ transplant market; and healthcare products. Its Laboratory Products and Biopharma Services segment provides laboratory products, research and safety market channel, and pharma services and clinical research. It offers products and services through a direct sales force, customer-service professionals, electronic commerce, and third-party distributors under Thermo Scientific; Applied Biosystems; Invitrogen; Fisher Scientific; Unity Lab Services; and Patheon and PPD. Thermo Fisher Scientific Inc. was founded in 1956 and is headquartered in Waltham, Massachusetts.