Cardinal Health (NYSE:CAH) vs. Straumann (OTCMKTS:SAUHY) Financial Contrast

Cardinal Health (NYSE:CAH) and Straumann (OTCMKTS:SAUHY) are both large-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Cardinal Health and Straumann, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cardinal Health	0	3	12	0	2.80
Straumann	1	1	1	3	3.00

Cardinal Health currently has a consensus price target of $176.87, suggesting a potential downside of 7.23%. Given Cardinal Health’s higher probable upside, research analysts clearly believe Cardinal Health is more favorable than Straumann.

Dividends

Cardinal Health pays an annual dividend of $2.04 per share and has a dividend yield of 1.1%. Straumann pays an annual dividend of $0.03 per share and has a dividend yield of 0.2%. Cardinal Health pays out 30.8% of its earnings in the form of a dividend. Cardinal Health has increased its dividend for 29 consecutive years. Cardinal Health is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Cardinal Health and Straumann’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cardinal Health	0.70%	-74.45%	4.14%
Straumann	N/A	N/A	N/A

Insider and Institutional Ownership

87.2% of Cardinal Health shares are held by institutional investors. 0.1% of Cardinal Health shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Cardinal Health has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, Straumann has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500.

Earnings and Valuation

This table compares Cardinal Health and Straumann”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cardinal Health	$234.31 billion	0.19	$1.56 billion	$6.63	28.75
Straumann	$2.84 billion	7.06	$441.09 million	N/A	N/A

Cardinal Health has higher revenue and earnings than Straumann.

Summary

Cardinal Health beats Straumann on 10 of the 16 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 Straumann

Straumann Holding AG provides tooth replacement and orthodontic solutions worldwide. It researches, develops, manufactures, and supplies dental implants, instruments, CADCAM prosthetics, orthodontic aligners, biomaterials, and digital solutions for use in tooth correction, replacement, and restoration, as well as to prevent tooth loss. The company offers dental implants and components made from titanium, titanium alloy, and ceramics; prosthetic elements made od ceramics, metal or polymer; and clear aligners. In addition, it offers resins for 3D printing and thermoplastics for clear aligner production; and biomaterials for tissue generation. Further, it provides digital equipment comprising scanners, milling machines and 3D printers. Further, it offers training and education services. The company provides its products to general dentists, specialists, and dental technicians and laboratories, as well as customers, such as distributors, hospitals, universities, and dental service organizations in approximately 100 countries through a network of distribution subsidiaries and partners. Straumann Holding AG was founded in 1954 and is headquartered in Basel, Switzerland.