Analyzing Simulations Plus (NASDAQ:SLP) and Revvity (NYSE:RVTY)
by Kim Johansen · The Markets DailySimulations Plus (NASDAQ:SLP – Get Free Report) and Revvity (NYSE:RVTY – Get Free Report) are both healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.
Institutional & Insider Ownership
78.1% of Simulations Plus shares are owned by institutional investors. Comparatively, 86.7% of Revvity shares are owned by institutional investors. 19.1% of Simulations Plus shares are owned by insiders. Comparatively, 0.9% of Revvity shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Dividends
Simulations Plus pays an annual dividend of $0.24 per share and has a dividend yield of 1.3%. Revvity pays an annual dividend of $0.28 per share and has a dividend yield of 0.2%. Simulations Plus pays out 60.0% of its earnings in the form of a dividend. Revvity pays out 13.3% 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.
Analyst Recommendations
This is a summary of recent recommendations for Simulations Plus and Revvity, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Simulations Plus | 1 | 7 | 0 | 0 | 1.88 |
| Revvity | 0 | 13 | 5 | 0 | 2.28 |
Simulations Plus presently has a consensus target price of $17.25, indicating a potential downside of 6.76%. Revvity has a consensus target price of $124.43, indicating a potential downside of 22.44%. Given Simulations Plus’ higher probable upside, equities research analysts clearly believe Simulations Plus is more favorable than Revvity.
Valuation and Earnings
This table compares Simulations Plus and Revvity”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Simulations Plus | $82.06 million | 4.56 | -$64.72 million | $0.40 | 46.25 |
| Revvity | $2.86 billion | 6.27 | $241.20 million | $2.10 | 76.39 |
Revvity has higher revenue and earnings than Simulations Plus. Simulations Plus is trading at a lower price-to-earnings ratio than Revvity, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Simulations Plus has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, Revvity has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500.
Profitability
This table compares Simulations Plus and Revvity’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Simulations Plus | 9.88% | 13.50% | 12.45% |
| Revvity | 8.16% | 8.34% | 5.01% |
About Simulations Plus
Simulations Plus, Inc. develops drug discovery and development software for modeling and simulation, and prediction of molecular properties utilizing artificial intelligence and machine learning based technology worldwide. The company operates through two segments, Software and Services. It offers GastroPlus, which simulates the absorption and drug interaction of compounds administered to humans and animals; and DDDPlus and MembranePlus simulation products. The company also provides products based on mechanistic and mathematical models, such as DILIsym, NAFLDsym, ILDsym, RENAsym, IPFsym, and MITOsym products. In addition, it offers Absorption, Distribution, Metabolism, Excretion, and Toxicity Predictor for chemistry-based computer program that takes molecular structures as inputs and predicts their properties; and MedChem Designer, as well as MonolixSuite products for modeling and simulation that allows for population analyses, rapid clinical trial data analyses, and regulatory submissions. Further, the company provides clinical-pharmacology-based consulting services, which includes population pharmacokinetic and pharmacodynamic modeling, exposure-response analyses, clinical trial simulations, data programming, and technical writing services in support of regulatory submissions; and early drug discovery services. Additionally, it offers creative and insightful consulting services to support its quantitative systems pharmacology/quantitative systems toxicology modelling. The company serves pharmaceutical, biotechnology, agrochemical, cosmetics, and food industry companies, as well as academic and regulatory agencies. Simulations Plus, Inc. was incorporated in 1996 and is headquartered in Lancaster, California.
About Revvity
Revvity, Inc. provides health sciences solutions, technologies, and services in the Americas, Europe, and Asia, and internationally. The Life Sciences segment provides instruments, reagents, informatics, software, subscriptions, detection, imaging technologies, warranties, training, and services. Its Diagnostics segment provides instruments, reagents, assay platforms, and software products for the early detection of genetic disorders, such as pregnancy and early childhood, as well as infectious disease testing in the diagnostics market. Its products are used for testing and screening genetic abnormalities, disorders, and diseases, including down syndrome, hypothyroidism, muscular dystrophy, infertility, and various metabolic conditions. This segment also develops technologies that enable and support genomic workflows using protein coupled receptor and next-generation DNA sequencing for applications in oncology, immunodiagnostics, and drug discovery. It serves pharmaceutical and biotechnology companies, laboratories, academic and research institutions, public health authorities, private healthcare organizations, doctors, and government agencies under the AutoDELFIA, BACS-on-Beads, BIOCHIPs, Bioo Scientific,BoBs , chemagic, Chitas, DELFIA, DELFIA Xpress, DOPlify, EONIS, EUROArray, EUROIMMUN, EUROLabWorkstation, EUROLINE, EUROPattern, Evolution Evoya, explorer, Fontus, Genoglyphix, GSP, Haoyuan, IDS, IDS-i10 IDS-i10T, IDS-iSYS, iLab, iQ, JANUS, LabChip, LifeCycle, LimsLink, Migele, MultiPROBE, NEXTFLEX, NextPrep, Pannoramic, Panthera Puncher, PG-Seq, PGFind PKamp, PreNAT II, Prime, Protein Clear, ProteinEXact, QSigh, QuantiVac, RONIA, Sciclone, SimplicityChrom, Specimen Gate,Superflex, Symbio, T-SPOT, Touch, Twister, Vanadis, VariSpec, ViaCord VICTOR 2D, and Zephyr brand name. The company was formerly known as PerkinElmer, Inc. and changed its name to Revvity, Inc. in April 2023. Revvity, Inc. was founded in 1937 and is headquartered in Waltham, Massachusetts.