Financial Review: Revvity (NYSE:RVTY) versus Avantor (NYSE:AVTR)

Avantor (NYSE:AVTR) and Revvity (NYSE:RVTY) are both large-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.

Risk and Volatility

Avantor has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, Revvity has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.

Earnings & Valuation

This table compares Avantor and Revvity’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avantor	$6.97 billion	2.41	$321.10 million	$0.39	63.40
Revvity	$2.75 billion	4.52	$693.09 million	$1.21	83.15

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Avantor and Revvity, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avantor	0	4	12	0	2.75
Revvity	0	6	7	0	2.54

Avantor presently has a consensus target price of $26.71, indicating a potential upside of 8.05%. Revvity has a consensus target price of $118.17, indicating a potential upside of 17.45%. Given Revvity’s higher probable upside, analysts clearly believe Revvity is more favorable than Avantor.

Profitability

This table compares Avantor and Revvity’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avantor	3.79%	13.01%	5.22%
Revvity	5.49%	7.37%	4.22%

Institutional and Insider Ownership

95.1% of Avantor shares are owned by institutional investors. Comparatively, 86.7% of Revvity shares are owned by institutional investors. 1.5% of Avantor shares are owned by insiders. Comparatively, 0.6% of Revvity shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Avantor beats Revvity on 8 of the 14 factors compared between the two stocks.

About Avantor

Avantor, Inc. engages in the provision of mission-critical products and services to customers in the biopharma, healthcare, education and government, advanced technologies, and applied materials industries in the Americas, Europe, Asia, the Middle East, and Africa. The company offers materials and consumables, such as purity chemicals and reagents, lab products and supplies, formulated silicone materials, customized excipients, customized single-use assemblies, process chromatography resins and columns, analytical sample prep kits, education and microbiology products, clinical trial kits, peristaltic pumps, and fluid handling tips. It also provides equipment and instrumentation products, including filtration systems, virus inactivation systems, incubators, analytical instruments, evaporators, ultra-low-temperature freezers, biological safety cabinets, and critical environment supplies. In addition, the company offers services and specialty procurements comprising onsite lab and production, clinical, equipment, procurement and sourcing, and biopharmaceutical material scale-up and development services. Further, it provides scientific research support services, such as DNA extraction, bioreactor servicing, clinical and biorepository, and compound management services. The company was founded in 1904 and is headquartered in Radnor, Pennsylvania.

About Revvity

Revvity, Inc. provides health sciences solutions, technologies, and services in the Americas, Europe, and Asia, and internationally. The Life Sciences segment provides instruments, reagents, informatics, software, subscriptions, detection, imaging technologies, warranties, training, and services. Its Diagnostics segment provides instruments, reagents, assay platforms, and software products for the early detection of genetic disorders, such as pregnancy and early childhood, as well as infectious disease testing in the diagnostics market. Its products are used for testing and screening genetic abnormalities, disorders, and diseases, including down syndrome, hypothyroidism, muscular dystrophy, infertility, and various metabolic conditions. This segment also develops technologies that enable and support genomic workflows using protein coupled receptor and next-generation DNA sequencing for applications in oncology, immunodiagnostics, and drug discovery. It serves pharmaceutical and biotechnology companies, laboratories, academic and research institutions, public health authorities, private healthcare organizations, doctors, and government agencies under the AutoDELFIA, BACS-on-Beads, BIOCHIPs, Bioo Scientific,BoBs , chemagic, Chitas, DELFIA, DELFIA Xpress, DOPlify, EONIS, EUROArray, EUROIMMUN, EUROLabWorkstation, EUROLINE, EUROPattern, Evolution Evoya, explorer, Fontus, Genoglyphix, GSP, Haoyuan, IDS, IDS-i10 IDS-i10T, IDS-iSYS, iLab, iQ, JANUS, LabChip, LifeCycle, LimsLink, Migele, MultiPROBE, NEXTFLEX, NextPrep, Pannoramic, Panthera Puncher, PG-Seq, PGFind PKamp, PreNAT II, Prime, Protein Clear, ProteinEXact, QSigh, QuantiVac, RONIA, Sciclone, SimplicityChrom, Specimen Gate,Superflex, Symbio, T-SPOT, Touch, Twister, Vanadis, VariSpec, ViaCord VICTOR 2D, and Zephyr brand name. The company was formerly known as PerkinElmer, Inc. and changed its name to Revvity, Inc. in April 2023. Revvity, Inc. was founded in 1937 and is headquartered in Waltham, Massachusetts.