Contrasting Henry Schein (NASDAQ:HSIC) and Patterson Companies (PDCO)
Henry Schein (NASDAQ: HSIC) and Patterson Companies (NASDAQ:PDCO) are both mid-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitabiliy, institutional ownership, analyst recommendations, earnings and valuation.
Valuation & Earnings
This table compares Henry Schein and Patterson Companies’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Henry Schein||$11.78 billion||1.24||$1.00 billion||$6.58||28.08|
|Patterson Companies||$5.59 billion||0.72||$408.06 million||$1.79||23.96|
Henry Schein has higher revenue and earnings than Patterson Companies. Patterson Companies is trading at a lower price-to-earnings ratio than Henry Schein, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
90.6% of Henry Schein shares are held by institutional investors. Comparatively, 90.2% of Patterson Companies shares are held by institutional investors. 1.3% of Henry Schein shares are held by insiders. Comparatively, 0.5% of Patterson Companies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Volatility and Risk
Henry Schein has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, Patterson Companies has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.
This table compares Henry Schein and Patterson Companies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and recommmendations for Henry Schein and Patterson Companies, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Henry Schein presently has a consensus price target of $181.46, suggesting a potential downside of 1.77%. Patterson Companies has a consensus price target of $43.43, suggesting a potential upside of 1.26%. Given Patterson Companies’ higher probable upside, analysts clearly believe Patterson Companies is more favorable than Henry Schein.
Patterson Companies pays an annual dividend of $1.04 per share and has a dividend yield of 2.4%. Henry Schein does not pay a dividend. Patterson Companies pays out 58.1% of its earnings in the form of a dividend.
Henry Schein beats Patterson Companies on 14 of the 16 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.
Patterson Companies Company Profile
Patterson Companies, Inc. is a value-added distributor focused on providing a customer experience to professionals in the dental and animal health markets. The Company operates through three segments: dental, animal health and corporate. Dental and Animal health are strategic business units that offer similar products and services to different customer bases. Dental provides a virtually complete range of consumable dental products, equipment and software and turnkey digital solutions. In addition it provides value-added services to dentists, dental laboratories, institutions and other healthcare professionals throughout North America. Animal health is a leading, full-line distributor of animal health products, services and technologies. Corporate segment is comprised of general and administrative expenses, including home office support costs in areas such as information technology, finance, legal, human resources and facilities.
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