Analyzing Cantel Medical Corp. (NYSE:CMD) and Owens & Minor (OMI)
Cantel Medical Corp. (NYSE: CMD) and Owens & Minor (NYSE:OMI) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitabiliy, analyst recommendations, institutional ownership and valuation.
Cantel Medical Corp. pays an annual dividend of $0.14 per share and has a dividend yield of 0.2%. Owens & Minor pays an annual dividend of $1.03 per share and has a dividend yield of 3.2%. Cantel Medical Corp. pays out 8.3% of its earnings in the form of a dividend. Owens & Minor pays out 60.9% 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. Owens & Minor has increased its dividend for 18 consecutive years. Owens & Minor is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of current recommendations and price targets for Cantel Medical Corp. and Owens & Minor, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cantel Medical Corp.||0||3||0||0||2.00|
|Owens & Minor||1||1||0||0||1.50|
Cantel Medical Corp. presently has a consensus price target of $100.00, suggesting a potential upside of 33.08%. Owens & Minor has a consensus price target of $34.00, suggesting a potential upside of 6.95%. Given Cantel Medical Corp.’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Cantel Medical Corp. is more favorable than Owens & Minor.
Institutional & Insider Ownership
83.4% of Cantel Medical Corp. shares are owned by institutional investors. Comparatively, 98.3% of Owens & Minor shares are owned by institutional investors. 14.9% of Cantel Medical Corp. shares are owned by company insiders. Comparatively, 1.7% of Owens & Minor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
Cantel Medical Corp. has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, Owens & Minor has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.
This table compares Cantel Medical Corp. and Owens & Minor’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cantel Medical Corp.||9.50%||17.75%||11.32%|
|Owens & Minor||1.08%||12.28%||4.38%|
Earnings & Valuation
This table compares Cantel Medical Corp. and Owens & Minor’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cantel Medical Corp.||$741.62 million||4.21||$141.91 million||$1.69||44.46|
|Owens & Minor||$9.60 billion||0.20||$254.51 million||$1.69||18.81|
Owens & Minor has higher revenue and earnings than Cantel Medical Corp.. Owens & Minor is trading at a lower price-to-earnings ratio than Cantel Medical Corp., indicating that it is currently the more affordable of the two stocks.
Cantel Medical Corp. beats Owens & Minor on 10 of the 16 factors compared between the two stocks.
About Cantel Medical Corp.
Cantel Medical Corp. is a provider of infection prevention products and services in the healthcare market. The Company’s operating segments include Endoscopy; Water Purification and Filtration; Healthcare Disposables, and Dialysis. Its Endoscopy segment includes medical device reprocessing systems, disinfectants, detergents and other supplies. The Company’s Water Purification and Filtration segment includes water purification equipment and services, filtration and separation products, and disinfectant, sterilization and decontamination products and services. Its Healthcare Disposables segment includes single-use, infection prevention and control healthcare products. The Company’s Dialysis segment includes medical device reprocessing systems, sterilants/disinfectants, dialysate concentrates and other supplies for renal dialysis. The Company offers a range of filters utilizing hollow fiber membrane technology.
About Owens & Minor
Owens & Minor, Inc. is a healthcare services company that connects the world of medical products to the point of care. The Company provides supply chain assistance to the providers of healthcare services and the manufacturers of healthcare products, supplies and devices. The Company’s segments include Domestic, International and Clinical & Procedural Solutions (CPS). The Domestic Segment offers a portfolio of products and services to healthcare providers and manufacturers in the United States. The Company also offers additional services to healthcare providers, including supplier management, analytics, inventory management, outsourced resource management, clinical supply management and business process consulting. The International segment includes its European distribution and logistics business. The CPS segment provides product-related solutions, helping manufacturers and healthcare providers source, assemble and deliver procedure kits to the point-of-care.
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