Critical Analysis: Mettler-Toledo International (NYSE:MTD) and Agilent Technologies (NYSE:A)

Agilent Technologies (NYSE:A) and Mettler-Toledo International (NYSE:MTD) are both large-cap healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.

Institutional and Insider Ownership

87.4% of Agilent Technologies shares are held by institutional investors. Comparatively, 95.1% of Mettler-Toledo International shares are held by institutional investors. 0.2% of Agilent Technologies shares are held by insiders. Comparatively, 0.7% of Mettler-Toledo International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Agilent Technologies and Mettler-Toledo International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Agilent Technologies	19.53%	24.45%	13.09%
Mettler-Toledo International	22.25%	15,012.71%	25.41%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Agilent Technologies and Mettler-Toledo International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Agilent Technologies	0	4	18	0	2.82
Mettler-Toledo International	1	8	6	0	2.33

Agilent Technologies presently has a consensus target price of $181.45, suggesting a potential upside of 4.23%. Mettler-Toledo International has a consensus target price of $1,595.77, suggesting a potential downside of 7.96%. Given Agilent Technologies’ stronger consensus rating and higher probable upside, equities analysts plainly believe Agilent Technologies is more favorable than Mettler-Toledo International.

Earnings and Valuation

This table compares Agilent Technologies and Mettler-Toledo International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Agilent Technologies	$7.37 billion	6.66	$1.30 billion	$5.08	34.27
Mettler-Toledo International	$4.20 billion	8.21	$869.19 million	$46.15	37.57

Agilent Technologies has higher revenue and earnings than Mettler-Toledo International. Agilent Technologies is trading at a lower price-to-earnings ratio than Mettler-Toledo International, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Agilent Technologies has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, Mettler-Toledo International has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.

Summary

Mettler-Toledo International beats Agilent Technologies on 8 of the 14 factors compared between the two stocks.

About Agilent Technologies

Agilent Technologies develops and supplies instruments, software, services and consumables used in laboratories and manufacturing operations. Its offerings support applications in life sciences, diagnostics, chemical analysis, food safety, environmental testing and pharmaceutical research. The company serves customers worldwide, including pharmaceutical and biotechnology companies, clinical and academic laboratories, and organizations in the chemical, energy and food industries. Its services include laboratory equipment maintenance, technical support and related workflow solutions.

About Mettler-Toledo International

Mettler-Toledo International develops and manufactures precision instruments and systems used in laboratory, industrial, and retail settings. Its products include laboratory balances and analytical instruments, industrial scales and weighing systems, and equipment for measuring and monitoring production processes. The company also supplies product-inspection systems, including checkweighers, metal detectors, and X-ray inspection equipment, along with related software, installation, maintenance, and calibration services.