UKRAINE - 2021/10/21: In this photo illustration Illumina, Inc. logo seen displayed on a smartphone ... [+] and in the background. (Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images)
We believe that Illumina stock (NASDAQ NDAQ : ILMN), a gene sequencing company, is currently a better pick than Thermo Fisher Scientific stock (NYSE: TMO), given Illumina’s ILMN better prospects. Both companies are trading at a similar valuation of around 5x trailing revenues. If we look at stock returns, Thermo Fisher Scientific TMO , despite a fall of 18% year-to-date, has outperformed Illumina, down 43%, as well as the broader markets, with the S&P500 index falling 21%. For Illumina, legal troubles around the acquisition of Grail – a cancer blood test developer – have weighed on its stock this year. Illumina’s deal for Grail is under an antitrust review in the U.S. and Europe. There is more to the comparison, and in the sections below, we discuss why we believe ILMN stock will offer better returns than TMO stock in the next three years. We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis of Illumina vs. Thermo Fisher Scientific Group: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. Thermo Fisher Scientific’s Revenue Growth Has Been Better In Recent Years
Annual Growth Forecast - ILMN vs. TMO
Thermo Fisher Scientific Is More Profitable But Comes With Higher Risk
3. The Net of It All
Stock Return Forecast - ILMN vs. TMO
While ILMN stock may outperform TMO, the Covid-19 crisis has created many pricing discontinuities, which can offer attractive trading opportunities. For example, you’ll be surprised at how counter-intuitive the stock valuation is for Abbott vs. Amerco.
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ILMN & TMO Returns Compared With Trefis Multi-Strategy Portfolio
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