Financial Analysis: Henry Schein (NASDAQ:HSIC) versus Owens & Minor (OMI)
Henry Schein (NASDAQ: HSIC) and Owens & Minor (NYSE:OMI) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitabiliy and dividends.
Institutional & Insider Ownership
90.7% of Henry Schein shares are held by institutional investors. Comparatively, 98.4% of Owens & Minor shares are held by institutional investors. 1.3% of Henry Schein shares are held by company insiders. Comparatively, 1.7% of Owens & Minor shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Henry Schein and Owens & Minor’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Henry Schein||$11.78 billion||1.25||$1.00 billion||$6.58||28.10|
|Owens & Minor||$9.60 billion||0.20||$254.51 million||$1.69||18.85|
Henry Schein has higher revenue and earnings than Owens & Minor. Owens & Minor is trading at a lower price-to-earnings ratio than Henry Schein, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations and price targets for Henry Schein and Owens & Minor, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Owens & Minor||1||1||0||0||1.50|
Henry Schein presently has a consensus target price of $181.46, indicating a potential downside of 1.87%. Owens & Minor has a consensus target price of $34.00, indicating a potential upside of 6.75%. Given Owens & Minor’s higher probable upside, analysts clearly believe Owens & Minor is more favorable than Henry Schein.
Volatility & Risk
Henry Schein has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500. Comparatively, Owens & Minor has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.
Owens & Minor pays an annual dividend of $1.03 per share and has a dividend yield of 3.2%. Henry Schein does not pay a dividend. Owens & Minor pays out 60.9% of its earnings in the form of a dividend. Owens & Minor has increased its dividend for 18 consecutive years.
This table compares Henry Schein and Owens & Minor’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Owens & Minor||1.08%||12.28%||4.38%|
Henry Schein beats Owens & Minor on 12 of the 17 factors compared between the two stocks.
Henry Schein Company Profile
Henry Schein, Inc. is a provider of healthcare products and services primarily to office-based dental, animal health and medical practitioners. The Company operates through two segments: healthcare distribution, and technology and value-added services. The healthcare distribution segment distributes consumable products, small equipment, laboratory products, large equipment, equipment repair services, branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products and vitamins. The technology and value-added services segment provides software, technology and other value-added services to healthcare practitioners. Its technology group offerings include practice management software systems for dental and medical practitioners and animal health clinics. The Company provides its services to dental practitioners and laboratories, animal health clinics and physician practices, as well as government and institutional healthcare clinics.
Owens & Minor Company Profile
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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