Looking at technology stocks, it would be easy to find potential in that market but between these companies, which should investors pay more attention to? Align Technology, Inc. (NASDAQ: ALGN) who its competition is, and the first name mentioned will be Danaher Corporation (NYSE: DHR).
Investors appear to be putting their money on Align with the stock up more than 70% so far in 2018, while Danaher stock is up around 16%. But which is a better bet looking ahead?
Contender #1: Align Technology
Align is making progress in building out its market share. In July, the company announced that its Q2 revenue soared nearly 38% year over year to $490.3 million. Shipments of its Invisalign clear aligners jumped 30.5% over the prior-year period.
One way the company is widening its footprint is by conducting more promotional efforts. Align is also expanding into more international markets. For example, it recently opened its first Invisalign treatment planning facility in Europe. Emerging markets present another great opportunity for growth.
Invisalign isn’t Align’s only product, however. The company also advertises intraoral scanners, which are used to create 3D models of patients’ teeth. These 3D models can then be used to create treatment plans for Align’s clear aligners. The company’s scanner business is hitting on all angles.
But What About Danaher?
The company is large with a number of areas of focus. Danaher’s largest business unit is its diagnostics segment, followed closely by its life sciences unit, both of which generate annual sales approaching $6 billion. The company’s environmental and applied solutions segment makes around $4 billion per year.
The good news for investors looking at risk profiles is that most of Danaher’s businesses do pretty well even during bad times in the market. That’s true for the company’s diagnostics, life sciences, and environmental businesses, which only saw a 1% drop in revenue in 2009, which was the hardest year of the Great Recession.
Danaher’s growth prospects could also be shining bright. The agreement among Wall Street analysts is that Danaher will see average annual earnings growth of 9% over the next five years. In 2017, Danaher’s recurring revenue from consumables generated roughly 65% of total revenue. That’s a good base on which to build additional growth. Danaher also hasn’t been shy about making strategic acquisitions to drive revenue and earnings higher.
On top of all of this, Danaher offers a modest dividend with a yield of 0.6%. Although the dividend payout has swung up and down somewhat in recent years, Danaher appears to be in a great financial position to not only keep the dividends flowing but also boost its dividend down the road.
