Danaher vs. Meta Platforms: DHR stock's higher valuation vs. META appears counterintuitive

Last Updated: 3/14/2025

Meta Platforms Appears To Be A Better Choice Compared To Danaher

META valuation (P/EBIT) is lower vs. DHR, but META has performed better on growth and better on margins

This disconnect between valuation and financial performance implies that META could be a better buy 

 

Danaher valuation (P/EBIT) is higher compared to Meta Platforms

DHR vs. META P/EBIT Change In Last 3 Years: 7.1% vs. 56%

Danaher revenue growth is worse compared to Meta Platforms

DHR vs. META Revenue Growth:   Last Q: 2.1% vs. 21%; Last 12 Months: -0.06% vs. 22%; Last 3 Years Average: -1.2% vs. 12%

Danaher's EBIT margin expansion is worse compared to Meta Platforms

DHR vs. META EBIT Margin Change:   Last 3 Years: 0.8x vs. 1.1x

While Meta Platforms appears to be the better choice today, how has its stock performed vs. Danaher in the past?

Since 2021, returns have been:

• 54% for Danaher (DHR)
• 187% for Meta Platforms (META) 
• 79% for S&P 500 
• 248% for Trefis Multi-Strategy Portfolio 

Making Sense Of Counterintuitive Comparisons

Concepts, FAQ, And Things You May Want To Know

[1] What Is The Purpose Of Counterintuitive Comparisons?

[2] How Do You Find These Counterintuitive Pairs?

[3] If I Were To Decide Based On Counterintuitive Comparisons, How Likely Is It That I Will Make The Right Pick?

[4] Where Can I See More Such Counterintuitive Comparisons?

[5] I Don't Want To Go Through Multiple Comparisons, Can You Simplify Investment Decision For Me?

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