Patterson Companies (NASDAQ:PDCO) and TERUMO Corp/ADR (OTCMKTS:TRUMY) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.
Patterson Companies pays an annual dividend of $1.04 per share and has a dividend yield of 4.4%. TERUMO Corp/ADR pays an annual dividend of $0.21 per share and has a dividend yield of 0.4%. Patterson Companies pays out 61.9% of its earnings in the form of a dividend. TERUMO Corp/ADR pays out 9.6% 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. Patterson Companies has raised its dividend for 8 consecutive years. Patterson Companies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional and Insider Ownership
90.5% of Patterson Companies shares are held by institutional investors. 0.6% of Patterson Companies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk and Volatility
Patterson Companies has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, TERUMO Corp/ADR has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500.
This table compares Patterson Companies and TERUMO Corp/ADR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Patterson Companies and TERUMO Corp/ADR’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Patterson Companies||$5.47 billion||0.41||$200.97 million||$1.68||14.18|
|TERUMO Corp/ADR||$5.31 billion||4.02||$821.65 million||$2.19||25.64|
TERUMO Corp/ADR has lower revenue, but higher earnings than Patterson Companies. Patterson Companies is trading at a lower price-to-earnings ratio than TERUMO Corp/ADR, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for Patterson Companies and TERUMO Corp/ADR, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Patterson Companies currently has a consensus target price of $25.65, indicating a potential upside of 7.70%. Given Patterson Companies’ higher probable upside, equities analysts plainly believe Patterson Companies is more favorable than TERUMO Corp/ADR.
Patterson Companies Company Profile
Patterson Companies, Inc. distributes and sells dental and animal health products in the United States, the United Kingdom, and Canada. It operates through Dental and Animal Health segments. The company's Dental segment offers consumable products, such as infection control, restorative materials, hand instruments, and sterilization products; basic and advanced technology dental equipment; patient education systems; and office forms and stationery. This segment also develops and sells technology solutions, such as practice management software and e-commerce solutions. In addition, it offers a range of related services, including software and design, maintenance and repair, and equipment financing services. The company's Animal Health segment distributes animal health products, such as pharmaceuticals, vaccines, parasiticides, diagnostics, prescription and non-prescription diets, nutritionals, consumable supplies, equipment, and software to veterinarians, producers, and retailers under the Aspen, First Companion, and Patterson Veterinary brands. This segment also offers a range of value-added services to animal health customers. Patterson Companies, Inc. serves dentists, laboratories, institutions, other healthcare professionals, veterinarians, other animal health professionals, production animal operators, and animal health product retailers. The company was formerly known as Patterson Dental Company and changed its name to Patterson Companies, Inc. in June 2004. Patterson Companies, Inc. was founded in 1877 and is headquartered in St. Paul, Minnesota.
TERUMO Corp/ADR Company Profile
Terumo Corporation develops, manufactures, and distributes medical devices and services worldwide. It provides products for use in cardiothoracic surgery, interventional procedure, and medicine transfusion. The company offers vascular intervention devices, such as introducer sheathes, guide wires, angiographic catheters, and radial artery compression devices; therapeutic devices; and intravascular imaging systems, including optical frequency domain imaging and intravascular ultrasound systems. It also provides interventional oncology devices, such as micro balloon catheters, micro catheters and guide wires, and drug-elutable beads; cardiopulmonary bypass systems comprising oxygenators with integrated arterial filters, heart-lung machines, and devices for operating a centrifugal pumps for extracorporeal life support systems; and thoracic vascular and abdominal vascular grafts. In addition, the company offers infusion systems; closed anticancer drug infusion systems; blood glucose monitoring systems, digital blood pressure monitors, digital thermometers, pulse oximeters, walking intensity monitors, body composition monitors, and HR joint meter/monitors; sprayable adhesion barrier gels; analgesics; pharmaceuticals and nutritional supplements; and peritoneal dialysis devices and fluids. Further, it provides other consumer healthcare products, such as basal thermometers, fall prevention products, oral care products, and urine test strips; and blood bag systems with leukocyte reduction filters, automated blood collection and blood component processing systems, pathogen reduction technology systems, centrifugal apheresis systems, cell expansion systems, and autologous cell processing devices. The company was formerly known as Sekisen Ken-onki Corporation and changed its name to Terumo Corporation in October 1974. Terumo Corporation was founded in 1921 and is headquartered in Tokyo, Japan.
Receive News & Ratings for Patterson Companies Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Patterson Companies and related companies with MarketBeat.com's FREE daily email newsletter.