Analyzing Danaher (NYSE:DHR) & Auna (NYSE:AUNA)

Auna (NYSE:AUNA) and Danaher (NYSE:DHR) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Risk and Volatility

Auna has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500. Comparatively, Danaher has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Profitability

This table compares Auna and Danaher’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Auna	2.13%	19.23%	4.70%
Danaher	14.71%	10.81%	6.90%

Valuation & Earnings

This table compares Auna 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
Auna	$1.23 billion	0.32	$27.39 million	$0.36	14.66
Danaher	$24.57 billion	5.61	$3.61 billion	$5.04	38.64

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

Insider and Institutional Ownership

79.1% of Danaher shares are owned by institutional investors. 10.8% of Danaher shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Auna and Danaher, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Auna	1	2	1	1	2.40
Danaher	0	3	18	0	2.86

Auna currently has a consensus price target of $7.30, suggesting a potential upside of 38.36%. Danaher has a consensus price target of $246.75, suggesting a potential upside of 26.70%. Given Auna’s higher probable upside, equities research analysts clearly believe Auna is more favorable than Danaher.

Summary

Danaher beats Auna on 11 of the 15 factors compared between the two stocks.

About Auna

Auna S.A., a healthcare service provider, operates hospitals and clinics in Mexico, Peru, and Colombia. The company provides prepaid healthcare plans in Peru; and dental and vision plans in Mexico. The company was founded in 1989 and is based in Luxembourg, Luxembourg.

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.