In today’s rapidly evolving healthcare technology landscape, choosing the right company to invest in can be challenging yet rewarding. DHR and MTD are two industry leaders known for their innovative medical instruments and solutions, competing in overlapping markets with distinct strategies. This comparison will help you understand which company holds the most promise for your investment portfolio in 2026. Let’s dive in and uncover the best opportunity for you.
Table of contents
Companies Overview
I will begin the comparison between DHR and MTD by providing an overview of these two companies and their main differences.
DHR Overview
DHR operates as a diversified technology company focusing on medical, industrial, and life sciences solutions. It aims to improve quality of life through innovative products and services. DHR holds a strong position in its markets, leveraging advanced technology and broad industry expertise to maintain steady growth and competitive advantage.
MTD Overview
MTD is a global provider specializing in precision instruments and measurement technologies. The company is committed to delivering high-accuracy solutions that support various technical and industrial applications. MTD has established itself as a reliable player by emphasizing innovation and customer-centric product development in its niche sectors.
Key similarities and differences
Both DHR and MTD emphasize innovation and technology in their business models, targeting specialized industrial and scientific markets. While DHR offers a broader range of products across health and industrial segments, MTD focuses more narrowly on precision measurement instruments. This distinction highlights DHR’s diversified approach versus MTD’s specialized market strategy.
Income Statement Comparison
This table compares the key income statement metrics for DHR and MTD for the fiscal year 2024, highlighting revenue, profitability, and earnings per share.
| Metric | DHR | MTD |
|---|---|---|
| Market Cap | – | – |
| Revenue | 23.9B | 3.87B |
| EBITDA | 7.28B | 1.22B |
| EBIT | 4.92B | 1.10B |
| Net Income | 3.90B | 863M |
| EPS | 5.33 | 40.67 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
DHR
DHR’s revenue showed a slight decline of 0.06% in 2024, with net income down 18.11% year-over-year, despite a 7.14% growth over five years. Margins remain stable, with a favorable gross margin of 59.5% and net margin of 16.33%. The recent downturn includes a 7.67% EBIT drop and lower EPS, signaling a slowdown in profitability growth.
MTD
MTD posted a 2.22% revenue increase in 2024, with net income rising 7.05% and EPS up 13.29%, reflecting improved profitability. Over the 2020-2024 period, revenue and net income grew by 25.52% and 43.2%, respectively. Margins are strong and expanding, with a 58.17% gross margin and a notably high 22.29% net margin, indicating operational efficiency gains.
Which one has the stronger fundamentals?
MTD demonstrates stronger fundamentals with consistent growth in revenue, net income, and margins, supported by a favorable global income statement evaluation. In contrast, DHR shows mixed results with recent declines and neutral overall growth, reflected in a balanced mix of favorable and unfavorable indicators, suggesting more caution is warranted when assessing its financial strength.
Financial Ratios Comparison
The table below presents the key financial ratios for DHR and MTD as of the fiscal year ending 2024, providing a direct comparison of profitability, valuation, liquidity, leverage, efficiency, and dividend metrics.
| Ratios | DHR (2024) | MTD (2024) |
|---|---|---|
| ROE | 7.87% | -680.23% |
| ROIC | 6.09% | 41.06% |
| P/E | 43.04 | 30.09 |
| P/B | 3.39 | -204.66 |
| Current Ratio | 1.40 | 1.02 |
| Quick Ratio | 1.05 | 0.73 |
| D/E (Debt-to-Equity) | 0.35 | -16.79 |
| Debt-to-Assets | 22.11% | 65.77% |
| Interest Coverage | 18.65 | 15.10 |
| Asset Turnover | 0.31 | 1.20 |
| Fixed Asset Turnover | 3.93 | 5.03 |
| Payout Ratio | 19.70% | 0.00% |
| Dividend Yield | 0.46% | 0.00% |
Interpretation of the Ratios
DHR
DHR shows a mix of strong and weak ratios: favorable net margin at 16.33% and solid interest coverage of 17.71, but unfavorable ROE at 7.87% and asset turnover at 0.31. Its dividend yield is low at 0.46%, indicating modest shareholder returns. The payout appears cautious, supported by free cash flow, minimizing risks of unsustainable distributions or buybacks.
MTD
MTD exhibits a favorable net margin of 22.29% and excellent ROIC at 41.06%, but a severely negative ROE at -680.23%, raising concerns. The company does not pay dividends, likely reflecting reinvestment priorities and negative equity. Favorable asset turnover (1.2) and interest coverage (14.75) contrast with a weak quick ratio at 0.73, indicating liquidity caution.
Which one has the best ratios?
Both DHR and MTD have half their ratios rated favorable and roughly one-third unfavorable, resulting in a slightly favorable overall view. DHR’s stable dividend and stronger liquidity contrast with MTD’s high ROIC but negative equity. Neither stands out decisively; investors should weigh the mix of strengths and weaknesses carefully.
Strategic Positioning
This section compares the strategic positioning of DHR and MTD, focusing on market position, key segments, and exposure to technological disruption:
DHR
- Leading market player with diversified exposure; faces moderate competitive pressure.
- Diverse segments: Measurement recurring/nonrecurring revenues, dental, diagnostics, life sciences.
- Moderate exposure to technological disruption due to varied product lines and recurring revenues.
MTD
- Mid-sized competitor with focused presence; operates under steady competitive conditions.
- Concentrated on industrial, laboratory, and retail products and services.
- Limited exposure focused on industrial and laboratory sectors, with stable product offerings.
DHR vs MTD Positioning
DHR adopts a diversified approach across multiple segments including measurement and healthcare-related fields, providing broad exposure but complexity. MTD concentrates on industrial and laboratory products, offering focused business drivers but less segment diversity.
Which has the best competitive advantage?
MTD shows a very favorable moat with strong ROIC exceeding WACC and a growing profitability trend, indicating a durable competitive advantage. DHR has a slightly unfavorable moat, shedding value despite improving ROIC trends.
Stock Comparison
The past year has shown contrasting stock price dynamics for DHR and MTD, with DHR experiencing a bearish trend overall while MTD demonstrated a strong bullish acceleration, reflecting differing market sentiments and momentum.
Trend Analysis
DHR’s stock declined by 4.65% over the past 12 months, indicating a bearish trend with accelerating downward momentum. The price ranged between 181.77 and 276.75, showing significant volatility with a 26.9 standard deviation.
MTD’s stock rose by 25.07% in the same period, marking a bullish trend with accelerating gains. Price fluctuated from 1004.96 to 1522.75, accompanied by a high volatility due to a 116.45 standard deviation.
Comparatively, MTD outperformed DHR with a 25.07% gain versus DHR’s 4.65% decline, delivering the highest market performance over the analyzed year.
Target Prices
The current analyst consensus provides a clear target range for both DHR and MTD, reflecting moderate upside potential.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| DHR | 270 | 220 | 247.57 |
| MTD | 1600 | 1400 | 1504.17 |
Analysts expect DHR’s stock to trade around 247.57, suggesting a moderate gain versus current levels. MTD shows a higher target consensus near 1504, indicating strong confidence in its growth potential.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for DHR and MTD:
Rating Comparison
DHR Rating
- Rating: B+, considered very favorable overall.
- Discounted Cash Flow Score: 4, indicating a favorable valuation outlook.
- ROE Score: 3, showing moderate efficiency in generating profit from equity.
- ROA Score: 4, suggesting favorable asset utilization efficiency.
- Debt To Equity Score: 2, a moderate level of financial risk from leverage.
- Overall Score: 3, a moderate overall financial standing.
MTD Rating
- Rating: C+, also evaluated as very favorable overall.
- Discounted Cash Flow Score: 3, reflecting a moderate valuation outlook.
- ROE Score: 1, indicating very unfavorable efficiency in profit generation.
- ROA Score: 5, reflecting very favorable asset utilization efficiency.
- Debt To Equity Score: 1, indicating very unfavorable financial risk.
- Overall Score: 2, showing a moderate but lower overall financial standing.
Which one is the best rated?
Based strictly on the provided data, DHR holds a higher overall rating (B+ vs. C+) and stronger scores in discounted cash flow, ROE, and debt-to-equity, while MTD outperforms in ROA but has generally weaker scores elsewhere.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for DHR and MTD:
DHR Scores
- Altman Z-Score: 4.78, indicating a safe zone with low bankruptcy risk.
- Piotroski Score: 7, classified as strong financial health.
MTD Scores
- Altman Z-Score: 6.88, indicating a safe zone with very low bankruptcy risk.
- Piotroski Score: 8, classified as very strong financial health.
Which company has the best scores?
MTD has higher scores in both Altman Z-Score and Piotroski Score, indicating stronger financial stability and health compared to DHR based on the provided data.
Grades Comparison
The following presents the recent reliable grades for DHR and MTD from various reputable grading companies:
DHR Grades
This table shows the latest grades assigned to DHR by established grading firms.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| TD Cowen | Maintain | Buy | 2026-01-07 |
| Guggenheim | Maintain | Buy | 2026-01-05 |
| Wells Fargo | Maintain | Equal Weight | 2025-12-15 |
| Wells Fargo | Maintain | Equal Weight | 2025-10-23 |
| Barclays | Maintain | Overweight | 2025-10-22 |
| TD Cowen | Maintain | Buy | 2025-10-22 |
| Rothschild & Co | Downgrade | Neutral | 2025-10-08 |
| Evercore ISI Group | Maintain | Outperform | 2025-10-07 |
| B of A Securities | Maintain | Buy | 2025-09-22 |
| UBS | Maintain | Buy | 2025-07-23 |
Overall, DHR’s grades predominantly reflect a buy or overweight stance, with a consistent pattern of positive outlooks and few downgrades.
MTD Grades
This table shows the latest grades assigned to MTD by established grading firms.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Wells Fargo | Maintain | Equal Weight | 2025-12-15 |
| Barclays | Maintain | Overweight | 2025-12-15 |
| Citigroup | Maintain | Buy | 2025-11-10 |
| Barclays | Maintain | Overweight | 2025-11-10 |
| Wells Fargo | Maintain | Equal Weight | 2025-11-10 |
| Stifel | Maintain | Buy | 2025-11-10 |
| JP Morgan | Maintain | Neutral | 2025-10-09 |
| Evercore ISI Group | Maintain | Outperform | 2025-10-07 |
| Barclays | Maintain | Overweight | 2025-10-02 |
| B of A Securities | Maintain | Neutral | 2025-09-22 |
MTD’s grades mostly range from equal weight to overweight, with a mix of buy and neutral ratings, indicating moderate investor confidence.
Which company has the best grades?
DHR has received a stronger consensus with numerous buy and outperform ratings compared to MTD’s mixed equal weight and buy ratings. This suggests DHR is viewed more favorably by analysts, potentially indicating better growth or stability prospects for investors.
Strengths and Weaknesses
Below is a comparative overview of key strengths and weaknesses of DHR and MTD based on recent financial and operational data.
| Criterion | DHR | MTD |
|---|---|---|
| Diversification | Highly diversified with multiple segments including Measurement recurring and nonrecurring revenues | Focused on Industrial, Laboratory, and Retail products and services |
| Profitability | Net margin at 16.33% (favorable), ROIC 6.09% (neutral), but ROE low at 7.87% (unfavorable) | Higher net margin at 22.29%, very strong ROIC at 41.06%, but negative ROE at -680.23% |
| Innovation | Moderate innovation reflected in stable fixed asset turnover (3.93 favorable) and growing ROIC trend | Strong innovation with higher fixed asset turnover (5.03 favorable) and very favorable ROIC trend |
| Global presence | Strong recurring revenue base indicating stable global contracts | Broad industrial and laboratory product range with steady revenue growth, but less diversified geographically |
| Market Share | Large recurring contracts with consistent revenue growth in measurement segment | Solid market share in industrial and laboratory sectors but smaller scale overall |
Key takeaways: DHR shows strength in diversification and recurring revenue stability but faces challenges in profitability efficiencies. MTD excels in profitability and innovation metrics, demonstrating a durable competitive advantage, though it has risks reflected in negative ROE and lower liquidity ratios. Investors should weigh DHR’s stability against MTD’s high growth yet more volatile financial profile.
Risk Analysis
The table below summarizes key risk factors for DHR and MTD based on their latest financial and operational data from 2024.
| Metric | DHR | MTD |
|---|---|---|
| Market Risk | Moderate: PE 43.04, high valuation pressure | Moderate: PE 30.09, valuation concerns |
| Debt level | Low: Debt-to-Equity 0.35, favorable leverage | High: Debt-to-Assets 65.77%, unfavorable leverage |
| Regulatory Risk | Moderate: Exposure to global regulations | Moderate: Similar exposure, watch for compliance costs |
| Operational Risk | Moderate: Asset turnover low (0.31) | Lower: Strong asset turnover (1.2) but quick ratio weak (0.73) |
| Environmental Risk | Moderate: Manufacturing footprint requires compliance | Moderate: Higher debt may limit environmental investments |
| Geopolitical Risk | Moderate: Global supply chain exposure | Moderate: Similar global exposure, some currency risk |
In synthesis, MTD faces higher financial risk due to elevated debt levels, which could impact its resilience during market downturns. DHR’s main concern lies in its relatively high valuation and lower asset efficiency. Both companies share moderate regulatory and geopolitical risks, typical for their industries. Investors should weigh these risks against growth prospects and maintain cautious position sizing.
Which Stock to Choose?
DHR shows stable income with a slight 7.14% revenue growth over 2020-2024 but a recent 0.06% decline in 2024. Its profitability is moderate with a 16.33% net margin, though ROE is low at 7.87%. Debt metrics and interest coverage are favorable, and the overall rating is very favorable (B+), but ROIC is below WACC, indicating slight value destruction despite improving profitability.
MTD reports stronger income growth of 25.52% over the period with a 2.22% revenue increase in 2024. It has a higher net margin of 22.29% and very high ROIC well above WACC, signaling value creation and increasing profitability. However, its ROE is negative, debt-to-assets ratio is high, and the rating remains very favorable (C+), supported by strong asset turnover and good liquidity scores.
For investors prioritizing durable competitive advantage and value creation, MTD’s very favorable moat and income growth might appear more attractive, while those focused on financial stability and consistent profitability could find DHR’s moderate but stable metrics and favorable rating more reassuring. Both companies present slightly favorable financial ratios, suggesting a nuanced evaluation depending on risk tolerance and investment strategy.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of DHR and MTD to enhance your investment decisions:
