Financial Review: Thermo Fisher Scientific (NYSE:TMO) & Tandem Diabetes Care (NASDAQ:TNDM)

Thermo Fisher Scientific (NYSE:TMO) and Tandem Diabetes Care (NASDAQ:TNDM) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, analyst recommendations, profitability and institutional ownership.

Valuation & Earnings

This table compares Thermo Fisher Scientific and Tandem Diabetes Care”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Thermo Fisher Scientific	$44.56 billion	4.26	$6.70 billion	$18.19	28.05
Tandem Diabetes Care	$1.01 billion	1.02	-$204.71 million	($1.40)	-10.83

Thermo Fisher Scientific has higher revenue and earnings than Tandem Diabetes Care. Tandem Diabetes Care 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.

Analyst Ratings

This is a summary of current ratings and price targets for Thermo Fisher Scientific and Tandem Diabetes Care, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Thermo Fisher Scientific	0	6	18	2	2.85
Tandem Diabetes Care	1	11	9	1	2.45

Thermo Fisher Scientific currently has a consensus target price of $601.61, indicating a potential upside of 17.92%. Tandem Diabetes Care has a consensus target price of $29.12, indicating a potential upside of 92.12%. Given Tandem Diabetes Care’s higher probable upside, analysts plainly believe Tandem Diabetes Care is more favorable than Thermo Fisher Scientific.

Institutional & Insider Ownership

89.2% of Thermo Fisher Scientific shares are held by institutional investors. 0.3% of Thermo Fisher Scientific shares are held by insiders. Comparatively, 2.1% of Tandem Diabetes Care shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Thermo Fisher Scientific	15.15%	16.86%	8.15%
Tandem Diabetes Care	-9.20%	-53.88%	-7.88%

Volatility and Risk

Thermo Fisher Scientific has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, Tandem Diabetes Care has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500.

Summary

Thermo Fisher Scientific beats Tandem Diabetes Care on 12 of the 15 factors compared between the two stocks.

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.

About Tandem Diabetes Care

Tandem Diabetes Care, Inc., a medical device company, designs, develops, and commercializes technology solutions for people living with diabetes in the United States and internationally. The company's flagship product is the t:slim X2 insulin delivery system, a pump platform for managing insulin delivery and display continuous glucose monitoring sensor information directly on the pump home screen; and Tandem Mobi insulin pump, an automated insulin delivery system. It also sells single-use products, including cartridges for storing and delivering insulin, and infusion sets that connect the insulin pump to the user's body. In addition, the company offers Tandem Device Updater used to update the pump software from a personal computer; Tandem Source, a web-based data management platform, which provides a visual way to display diabetes therapy management data from the pumps, integrated CGMs, and supported blood glucose meters; and Sugarmate, a mobile app used to help people visualize diabetes therapy data. The company was formerly known as Phluid Inc. and changed its name to Tandem Diabetes Care, Inc. in January 2008. Tandem Diabetes Care, Inc. was incorporated in 2006 and is headquartered in San Diego, California.