Critical Survey: Bruker (BRKR) & Coherent (COHR)

Bruker (NASDAQ: BRKR) and Coherent (NASDAQ:COHR) are both mid-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Volatility and Risk

Bruker has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, Coherent has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.



Institutional and Insider Ownership

65.3% of Bruker shares are owned by institutional investors. Comparatively, 98.4% of Coherent shares are owned by institutional investors. 35.2% of Bruker shares are owned by company insiders. Comparatively, 1.4% of Coherent shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for Bruker and Coherent, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bruker 2 9 3 0 2.07
Coherent 0 0 9 0 3.00

Bruker currently has a consensus price target of $32.00, indicating a potential upside of 6.81%. Coherent has a consensus price target of $296.63, indicating a potential upside of 64.90%. Given Coherent’s stronger consensus rating and higher probable upside, analysts clearly believe Coherent is more favorable than Bruker.

Profitability

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

Net Margins Return on Equity Return on Assets
Bruker 4.45% 26.68% 10.33%
Coherent 11.79% 29.82% 14.48%

Dividends

Bruker pays an annual dividend of $0.16 per share and has a dividend yield of 0.5%. Coherent does not pay a dividend. Bruker pays out 13.2% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Bruker and Coherent’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bruker $1.77 billion 2.65 $78.60 million $1.21 24.76
Coherent $1.72 billion 2.59 $207.12 million $12.57 14.31

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

Summary

Coherent beats Bruker on 10 of the 16 factors compared between the two stocks.

Bruker Company Profile

Bruker Corporation develops, manufactures, and distributes scientific instruments, and analytical and diagnostic solutions worldwide. The company operates through two segments, Bruker Scientific Instruments, and Bruker Energy & Supercon Technologies. It offers life science tools based on magnetic resonance technology; life science mass spectrometry and ion mobility spectrometry systems; infrared spectroscopy and radiological/nuclear detectors for chemical, biological, radiological, nuclear and explosive detection in emergency response, homeland security, and defense applications; and analytical and process analysis instruments and solutions. The company also provides X-ray instruments, atomic force microscopy instrumentation, fluorescence optical microscopy instruments, analytical tools for electron microscopes and X-ray metrology, and defect-detection equipment for semiconductor process control, as well as handheld, portable, and mobile X-ray fluorescence spectrometry instruments and spark optical emission spectroscopy systems. In addition, it offers superconducting and non-superconducting materials and devices. The company serves pharmaceutical, biotechnology and diagnostics, chemical, food and beverage, clinical, polymer, nanotechnology, semiconductor, and industrial companies; nonprofit laboratories; contract research organizations, academic institutions, medical schools, nonprofit or for-profit forensics, agriculture, food and beverage safety, environmental and clinical microbiology laboratories, hospitals, and government departments and agencies; and raw material manufacturers, and other businesses involved in materials analysis. It markets its products through direct sales forces, distributors, independent sales representatives, and various other representatives. The company has an agreement with Evosep One for the co-development of the Evosep One chromatography system. Bruker Corporation was founded in 1991 and is headquartered in Billerica, Massachusetts.

Coherent Company Profile

Coherent, Inc. provides lasers and laser-based technology in a range of scientific, commercial, and industrial applications worldwide. It operates through two segments, Specialty Lasers and Systems, and Commercial Lasers and Components. The company designs, manufactures, services, and markets lasers, laser tools, precision optics, and related accessories. Its products are used in markets, such as microelectronics, materials processing, original equipment manufacturer components and instrumentation, and scientific research and government programs. The company markets its products through a direct sales force in the United States, as well as through direct sales personnel and independent representatives internationally. Coherent Inc. was founded in 1966 and is headquartered in Santa Clara, California.

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