Critical Survey: Henry Schein (HSIC) vs. Its Peers

Henry Schein (NASDAQ:HSIC) is one of 26 public companies in the “MED/DENTAL – SUPP” industry, but how does it contrast to its peers? We will compare Henry Schein to related companies based on the strength of its valuation, profitability, earnings, institutional ownership, risk, analyst recommendations and dividends.

Insider & Institutional Ownership

96.6% of Henry Schein shares are owned by institutional investors. Comparatively, 69.6% of shares of all “MED/DENTAL – SUPP” companies are owned by institutional investors. 1.1% of Henry Schein shares are owned by insiders. Comparatively, 9.4% of shares of all “MED/DENTAL – SUPP” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Henry Schein has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Henry Schein’s peers have a beta of 0.52, meaning that their average share price is 48% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Henry Schein and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Henry Schein	0	5	5	1	2.64
Henry Schein Competitors	104	1127	2020	113	2.64

Henry Schein currently has a consensus price target of $79.30, suggesting a potential upside of 6.21%. As a group, “MED/DENTAL – SUPP” companies have a potential upside of 13.51%. Given Henry Schein’s peers stronger consensus rating and higher possible upside, analysts plainly believe Henry Schein has less favorable growth aspects than its peers.

Valuation and Earnings

This table compares Henry Schein and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Henry Schein	$12.67 billion	$390.00 million	23.33
Henry Schein Competitors	$37.61 billion	$430.42 million	20.09

Henry Schein’s peers have higher revenue and earnings than Henry Schein. Henry Schein is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Henry Schein and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Henry Schein	3.21%	14.87%	5.82%
Henry Schein Competitors	2.88%	-3.91%	7.65%

Summary

Henry Schein peers beat Henry Schein on 7 of the 13 factors compared.

Henry Schein Company Profile

Henry Schein, Inc. provides health care products and services to dental practitioners, laboratories, physician practices, and ambulatory surgery centers, government, institutional health care clinics, and other alternate care clinics worldwide. It operates through two segments, Health Care Distribution, and Technology and Value-Added Services. The Health Care Distribution segment offers dental products, including infection-control products, handpieces, preventatives, impression materials, composites, anesthetics, teeth, dental implants, gypsum, acrylics, articulators, abrasives, dental chairs, delivery units and lights, X-ray supplies and equipment, personal protective equipment, and high-tech and digital restoration equipment, as well as equipment repair services. This segment also provides medical products, such as branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products, X-ray products, equipment, and vitamins. The Technology and Value-Added Services segment offers software, technology, and other value-added services that include practice management software systems for dental and medical practitioners; and value-added practice solutions comprising practice consultancy, education, revenue cycle management and financial services, e-services, practice technology, and network and hardware services, as well as consulting, and continuing education services. Henry Schein, Inc. was founded in 1932 and is headquartered in Melville, New York.