Covidien (NYSE: COV) and Landauer (NYSE:LDR) are both healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Dividends

Landauer pays an annual dividend of $1.10 per share and has a dividend yield of 1.6%. Covidien does not pay a dividend. Landauer pays out 57.0% of its earnings in the form of a dividend. Landauer has raised its dividend for 8 consecutive years.

Valuation & Earnings

This table compares Covidien and Landauer’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Covidien N/A N/A N/A N/A N/A
Landauer $153.35 million 4.22 $39.95 million $1.93 34.82

Landauer has higher revenue and earnings than Covidien.

Profitability

This table compares Covidien and Landauer’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Covidien 19.02% 20.06% 9.92%
Landauer 16.55% 96.20% 13.62%

Institutional & Insider Ownership

79.6% of Landauer shares are owned by institutional investors. 6.6% of Landauer shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and target prices for Covidien and Landauer, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Covidien 0 0 0 0 N/A
Landauer 0 1 0 0 2.00

Summary

Landauer beats Covidien on 7 of the 9 factors compared between the two stocks.

Covidien Company Profile

Covidien Public Limited Company is a healthcare products company. The Company is engaged in the development, manufacture and sale of healthcare products for use in clinical and home settings. The Company’s brands include Kendall, Nellcor, Puritan Bennett and Valleylab, among others. It has a presence in more than 70 countries, with products sold in over 150 countries. The Company’s segments include Medical Devices and United States Medical Supplies. Medical Devices includes marketing of advanced and general surgical solutions, peripheral vascular and neurovascular therapies, patient monitoring products, and airway and ventilation products. United States Medical Supplies includes products, such as nursing care, medical surgical, SharpSafety and original equipment manufacturer (OEM) products. The Company’s products include Surgical Solutions, Vascular Therapies, Respiratory and Patient Care.

Landauer Company Profile

Landauer, Inc. is a provider of technical and analytical services to determine occupational and environmental radiation exposure. The Company is a provider of outsourced medical physics services, and a provider of radiology related medical products. The Company operates through three segments: Radiation Measurement, Medical Physics and Medical Products. The Company provides radiation dosimetry services to hospitals, medical and dental offices, universities, national laboratories, nuclear facilities and other industries. Medical physics services are provided through the Company’s Landauer Medical Physics (LMP) division. The Company uses LMP as a platform to expand into the medical physics services market, serving domestic hospitals, radiation therapy centers and imaging centers. The Company’s Medical Products segment provides medical consumable accessories used in radiology, radiation therapy and image guided surgery procedures.

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