The sales growth will likely improve in 2024 and beyond. Thermo Fisher Scientific expects its organic sales to rise between 2% and 4% in 2023. However, it should return to growth next year, and its other businesses, including Medical Devices and Established Pharmaceuticals, should continue to grow steadily. For perspective, Abbott expects total Covid-19-related sales of $1.3 billion in 2023, compared to $8.4 billion last year. Abbott will see a dip in sales in 2023 owing to its diagnostics business.Looking forward, Thermo Fisher Scientific’s revenue is expected to grow much faster than Abbott’s over the next three years.Our Abbott Revenue Comparison and Thermo Fisher Scientific Revenue Comparison dashboards provide more insight into the companies’ sales.
The PPD business contributed $7.1 billion to the company’s top line in 2022. – a clinical research services provider to the biopharma and biotech industry – for $17.4 billion. This can be attributed to its December 2021 acquisition of PPD Inc. Thermo Fisher Scientific has seen a good 15% growth in 2022, primarily driven by its Laboratory Products & Biopharma Services segment, which saw a substantial 51% y-o-y growth.With the worst of Covid-19 behind us, the demand for testing has been declining, weighing on Abbott’s diagnostics business in recent quarters.Even if we look at the last twelve-month period, Thermo Fisher Scientific fares better with sales growth of 2% vs.Its sales growth is buoyed by continued market share gains for its instruments. Thermo Fisher Scientific manufactures analytical laboratory instruments used in various tests, and the pandemic has increased demand for these instruments.A high demand for Covid-19 testing drove Abbott’s sales growth in recent years.Thermo Fisher Scientific’s revenue growth has been better, with a 21% average annual growth rate in the last three years, compared to 11% for Abbott.Thermo Fisher Scientific’s Revenue Growth Is Better Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.ġ. Still, they fall short of the Sharpe of 1.3 for the Trefis Reinforced Value portfolio. Interestingly, ABT has had a Sharpe Ratio of 0.7 since early 2017, while the figure stood at 1.0 for TMO, higher than 0.6 for the S&P 500 Index over the same period. Thermo Fisher Scientific: Which Stock Is A Better Bet? Parts of the analysis are summarized below. We compare a slew of factors, such as historical revenue growth, returns, and valuation, in an interactive dashboard analysis of Abbott vs.
There is more to the comparison, and in the sections below, we discuss why we believe that TMO will offer better returns than ABT in the next three years. While ABT is down 6% this year, TMO is up 1%, and the S&P500 index is up 18%. Looking at stock returns, both have underperformed vis-à-vis broader markets. 4.4x for ABT due to its superior revenue growth. TMO trades at a slightly higher valuation multiple of 4.9x revenues vs. We believe Thermo Fisher Scientific stock (NYSE: TMO) is a better pick than its sector peer, Abbott stock (NYSE: ABT), given its better prospects.
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