Contrasting Prenetics Global (NASDAQ:PRE) & Bruker (NASDAQ:BRKR)

Prenetics Global (NASDAQ:PRE) and Bruker (NASDAQ:BRKR) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Volatility & Risk

Prenetics Global has a beta of -0.14, indicating that its stock price is 114% less volatile than the S&P 500. Comparatively, Bruker has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500.

Valuation and Earnings

This table compares Prenetics Global and Bruker’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prenetics Global	$23.23 million	2.29	-$62.72 million	($4.45)	-1.31
Bruker	$2.96 billion	3.03	$427.20 million	$2.75	22.48

Bruker has higher revenue and earnings than Prenetics Global. Prenetics Global is trading at a lower price-to-earnings ratio than Bruker, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Prenetics Global and Bruker’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Prenetics Global	-282.96%	-10.76%	-8.79%
Bruker	13.38%	27.31%	8.82%

Insider and Institutional Ownership

25.0% of Prenetics Global shares are held by institutional investors. Comparatively, 79.5% of Bruker shares are held by institutional investors. 28.3% of Bruker shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Prenetics Global and Bruker, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prenetics Global	0	0	1	0	3.00
Bruker	1	2	6	0	2.56

Prenetics Global presently has a consensus price target of $9.00, indicating a potential upside of 54.51%. Bruker has a consensus price target of $85.00, indicating a potential upside of 37.47%. Given Prenetics Global’s stronger consensus rating and higher possible upside, research analysts clearly believe Prenetics Global is more favorable than Bruker.

Dividends

Prenetics Global pays an annual dividend of $2.80 per share and has a dividend yield of 48.1%. Bruker pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. Prenetics Global pays out -62.9% of its earnings in the form of a dividend. Bruker pays out 7.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Prenetics Global is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Bruker beats Prenetics Global on 12 of the 16 factors compared between the two stocks.

About Prenetics Global

Prenetics Global Limited, a genomics-driven health sciences company, engages in revolutionizing prevention, early detection, and treatment. It offers CircleDNA, a prevention arm that uses whole exome sequencing to offer comprehensive consumer DNA test. The company also, through its joint venture, Insighta, engages in pioneering multi-cancer early detection technologies. In addition, the company, through its equity interests in ACT Genomics Holdings Company Limited, is involved in genomic profiling of solid tumors through ACTOnco. Prenetics Global Limited was founded in 2007 and is based in Quarry Bay, Hong Kong.

About Bruker

Bruker Corporation, together with its subsidiaries, develops, manufactures, and distributes scientific instruments, and analytical and diagnostic solutions in the United States, Europe, the Asia Pacific, and internationally. The company operates through four segments: Bruker Scientific Instruments (BSI) BioSpin, BSI CALID, BSI Nano, and Bruker Energy & Supercon Technologies. It offers life science tools, and single and multiple modality systems; life science mass spectrometry; MALDI Biotyper rapid pathogen identification platform and related test kits, DNA test strips, and fluorescence-based polymerase chain reaction technology; genotype and fluorotype molecular diagnostics kits; research, analytical, and process analysis instruments and solutions; SARS-CoV 2 testing for the diagnosis of COVID-19 infection; and Fluorotyper-SARS-CoV 2 plus kits. It also provides range of portable analytical and bioanalytical detection systems, and related products; X-ray instruments; analytical tools for electron microscopes, as well as handheld, portable, and mobile X-ray fluorescence spectrometry instruments; atomic force microscopy instrumentation; non-contact nanometer resolution solution topography; and automated X-ray metrology, automated AFM defect-detection, and photomask repair and cleaning equipment. In addition, the company offers advanced optical fluorescence microscopy instruments; products and services to support the multi-omics needs of researchers in translational research, drug, and biomarker discovery; superconducting materials, such as metallic low temperature superconductors; devices and complex tools based on metallic low temperature superconductors; and non-superconducting high technology tools, such as synchrotron and beamline instrumentation. The company was incorporated in 1991 and is headquartered in Billerica, Massachusetts.