Luminex Corporation LMNX and Pacific Biosciences of California, Inc. PACB are solid medical instrument companies going head to head in the U.S. MedTech space. Notably, analysts believe that the $3.5-trillion healthcare space is likely to see innovation and new technologies this year. Increased use of cloud-based applications, robotics and AI has maintained the popularity of healthcare stocks.
Considering this backdrop, it is difficult to choose between the above-mentioned companies as they have approximately the same size and similar business models. Notably, Luminex has a market cap of $1.01 billion while the same for Pacific Biosciences is $1.11 billion.
The scales apparently look balanced as both the stocks currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
However, we made a detailed analysis of the companies’ fundamentals to determine which has a slight edge over the other.
Texas-based Luminex develops, manufactures and markets proprietary biological testing technologies with applications throughout the life sciences and diagnostics industry. California-based Pacific Biosciences develops, manufactures and markets sequencing systems, which help in studying synthesis, composition, structure and regulation of DNA.
Price Performance & Style Score
Over the past year, shares of Pacific Biosciences have skyrocketed 163.2% compared with Luminex’s 8.2% rally. Both compare favorably with the industry’s 1.2% gain and the S&P 500 index’s 8.3% decline.
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Reflective of these favorable price movements, the stocks have a Momentum Score of A. This reflects possibilities of outperformance at the moment.
Which Way are Estimates Treading?
Earnings
The Zacks Consensus Estimate for Luminex’s fourth-quarter earnings per share (EPS) is pegged at 11 cents, reflecting a decline of 35.3% year over year. The same for Pacific Biosciences is pegged at a loss of 13 cents.
Pacific Biosciences of California, Inc. Price and Consensus
Pacific Biosciences of California, Inc. Price and Consensus | Pacific Biosciences of California, Inc. Quote
Sales
The Zacks Consensus Estimate for Luminex’s fourth-quarter revenues is pegged at $77.9 million, suggesting decline of 0.4% from the previous year. The same for Pacific Biosciences stands at $21.1 million, reflecting a fall of 15.5% year over year.
Luminex Corporation Price and Consensus
Luminex Corporation Price and Consensus | Luminex Corporation Quote
Fundamental Growth Story
Revenues
Over the past four years, Luminex’s revenues have seen a CAGR of 10.6% to $307 million. Meanwhile, Pacific Biosciences’ revenues have seen a CAGR of 15.1% to $93 million.
Earnings
Over the past four years, Luminex’s earnings have seen a CAGR of 3.9% to 83 cents per share. On the contrary, Pacific Biosciences’ loss of 89 cents narrowed from a loss of 94 cents over the same time frame.
Wrapping Up
The above analysis shows that despite being close contenders, Luminex wins over Pacific Biosciences when it comes to growth projections and fundamentals.
Key Picks
A couple of top-ranked stocks in the broader medical space are Veeva Systems Inc VEEV and Integer Holdings Corporation ITGR.
Veeva Systems’ long-term earnings growth rate is projected at 19.5%. The stock flaunts a Zacks Rank #1.
Integer Holdings projects earnings growth rate of 31.2% for the fourth quarter. It currently carries a Zacks Rank #1.
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