Analyzing Cardinal Health (NYSE:CAH) and Lancer Orthodontics (OTCMKTS:LANZ)

Cardinal Health (NYSE:CAH) and Lancer Orthodontics (OTCMKTS:LANZ) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.

Valuation and Earnings

This table compares Cardinal Health and Lancer Orthodontics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cardinal Health	$226.83 billion	0.16	$852.00 million	$6.41	24.33
Lancer Orthodontics	N/A	N/A	N/A	N/A	N/A

Cardinal Health has higher revenue and earnings than Lancer Orthodontics.

Institutional & Insider Ownership

87.2% of Cardinal Health shares are held by institutional investors. 0.1% of Cardinal Health shares are held by insiders. Comparatively, 24.3% of Lancer Orthodontics shares are held by 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 Ratings

This is a summary of recent recommendations for Cardinal Health and Lancer Orthodontics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cardinal Health	0	3	11	0	2.79
Lancer Orthodontics	0	0	0	0	0.00

Cardinal Health presently has a consensus price target of $158.07, suggesting a potential upside of 1.35%. Given Cardinal Health’s stronger consensus rating and higher probable upside, equities analysts plainly believe Cardinal Health is more favorable than Lancer Orthodontics.

Profitability

This table compares Cardinal Health and Lancer Orthodontics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cardinal Health	0.70%	-68.84%	4.21%
Lancer Orthodontics	N/A	N/A	N/A

Volatility & Risk

Cardinal Health has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, Lancer Orthodontics has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500.

Summary

Cardinal Health beats Lancer Orthodontics on 7 of the 10 factors compared between the two stocks.

About Cardinal Health

Cardinal Health, Inc. operates as a healthcare services and products company in the United States, Canada, Europe, Asia, and internationally. It provides customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home. The company operates in two segments, Pharmaceutical and Medical. The Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, and over-the-counter healthcare and consumer products. The segment also provides services to pharmaceutical manufacturers and healthcare providers for specialty pharmaceutical products; operates nuclear pharmacies and radiopharmaceutical manufacturing facilities; repackages generic pharmaceuticals and over-the-counter healthcare products; and provides pharmacy management services to hospitals. The Medical segment manufactures, sources, and distributes Cardinal Health branded medical, surgical, and laboratory products and devices that include exam and surgical gloves; needles, syringe, and sharps disposals; compressions; incontinences; nutritional delivery products; wound care products; single-use surgical drapes, gowns, and apparels; fluid suction and collection systems; urology products; operating room supply products; and electrode product lines. The segment also distributes a range of national brand products, including medical, surgical, and laboratory products; provides supply chain services and solutions to hospitals, ambulatory surgery centers, clinical laboratories, and other healthcare providers; and assembles and sells sterile, and non-sterile procedure kits. The company was incorporated in 1979 and is headquartered in Dublin, Ohio.

About Lancer Orthodontics

Lancer Orthodontics, Inc. designs, manufactures, and markets orthodontic products for orthodontists and dentists worldwide. It offers aesthetic brackets, brackets and buccal tubes, bands, adhesives, wires, elastomerics, intraoral and extraoral appliances, instruments, and miscellaneous products. The company was founded in 1967 and is based in Vista, California.