Critical Comparison: Henry Schein (NASDAQ:HSIC) and DENTSPLY SIRONA (NASDAQ:XRAY)

DENTSPLY SIRONA (NASDAQ:XRAY) and Henry Schein (NASDAQ:HSIC) are both mid-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, earnings and profitability.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for DENTSPLY SIRONA and Henry Schein, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DENTSPLY SIRONA	3	9	2	0	1.93
Henry Schein	1	6	5	0	2.33

DENTSPLY SIRONA presently has a consensus price target of $14.83, suggesting a potential upside of 18.95%. Henry Schein has a consensus price target of $76.42, suggesting a potential upside of 1.24%. Given DENTSPLY SIRONA’s higher probable upside, equities research analysts clearly believe DENTSPLY SIRONA is more favorable than Henry Schein.

Profitability

This table compares DENTSPLY SIRONA and Henry Schein’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DENTSPLY SIRONA	-24.34%	17.10%	5.37%
Henry Schein	3.02%	14.76%	5.56%

Insider and Institutional Ownership

95.7% of DENTSPLY SIRONA shares are owned by institutional investors. Comparatively, 96.6% of Henry Schein shares are owned by institutional investors. 0.5% of DENTSPLY SIRONA shares are owned by company insiders. Comparatively, 1.1% of Henry Schein shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

DENTSPLY SIRONA has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, Henry Schein has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

Earnings & Valuation

This table compares DENTSPLY SIRONA and Henry Schein”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DENTSPLY SIRONA	$3.79 billion	0.66	-$910.00 million	($4.42)	-2.82
Henry Schein	$12.67 billion	0.70	$390.00 million	$3.16	23.89

Henry Schein has higher revenue and earnings than DENTSPLY SIRONA. DENTSPLY SIRONA is trading at a lower price-to-earnings ratio than Henry Schein, indicating that it is currently the more affordable of the two stocks.

Summary

Henry Schein beats DENTSPLY SIRONA on 11 of the 14 factors compared between the two stocks.

About DENTSPLY SIRONA

DENTSPLY SIRONA Inc. manufactures and sells various dental products and technologies worldwide. It operates in four segments: Connected Technology Solutions, Essential Dental Solutions, Orthodontic and Implant Solutions, and Wellspect Healthcare. The company offers dental equipment comprising imaging equipment, motorized dental handpieces, treatment centers, other instruments, amalgamators, mixing machines, and porcelain furnaces; and dental CAD/CAM technologies to support dental restorations, such as intraoral scanners, 3-D printers, mills, other software and services, and a full-chairside economical restoration of esthetic ceramic dentistry, as well as DS Core, its cloud-based platform. It also provides endodontic products consisting of motorized endodontic handpieces, files, sealers, irrigation needles, and other tools that support root canal procedures; restorative products, including dental ceramics, crowns, and veneers; and preventative products, such as curing light systems, dental diagnostic systems, and ultrasonic scalers and polishers, as well as dental anesthetics, prophylaxis paste, dental sealants, and impression materials. In addition, the company offers SureSmile and Byte aligner solutions; VPro/HyperByte, a high-frequency vibration technology device; SureSmile Simulator, which creates a 3D visualization of a patient's outcome; and Byte Plus for treatment planning. Further, it provides dental implants, digital dentures, crown and bridge porcelain products, bone regenerative and restorative solutions, treatment planning software, and educational programs; dental prosthetics; urology catheters; and other health-related consumables. The company serves professional dental and consumable medical device markets through third-party distributors. The company was formerly known as DENTSPLY International Inc. and changed its name to DENTSPLY SIRONA Inc. in February 2016. DENTSPLY SIRONA Inc. was founded in 1877 and is headquartered in Charlotte, North Carolina

About Henry Schein

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.