Financial Survey: TERUMO Corp/ADR (TRUMY) and Henry Schein (HSIC)

TERUMO Corp/ADR (OTCMKTS:TRUMY) and Henry Schein (NASDAQ:HSIC) are both large-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.

Dividends

TERUMO Corp/ADR pays an annual dividend of $0.21 per share and has a dividend yield of 0.4%. Henry Schein does not pay a dividend. TERUMO Corp/ADR pays out 9.6% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for TERUMO Corp/ADR and Henry Schein, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TERUMO Corp/ADR 0 0 0 0 N/A
Henry Schein 2 8 8 0 2.33

Henry Schein has a consensus target price of $83.56, suggesting a potential downside of 0.45%. Given Henry Schein’s higher possible upside, analysts clearly believe Henry Schein is more favorable than TERUMO Corp/ADR.

Profitability

This table compares TERUMO Corp/ADR and Henry Schein’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TERUMO Corp/ADR 15.78% 16.44% 8.60%
Henry Schein 3.00% 20.40% 7.71%

Valuation and Earnings

This table compares TERUMO Corp/ADR and Henry Schein’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TERUMO Corp/ADR $5.31 billion 4.05 $821.65 million $2.19 25.84
Henry Schein $12.46 billion 1.03 $406.29 million $3.60 23.32

TERUMO Corp/ADR has higher earnings, but lower revenue than Henry Schein. Henry Schein 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.

Volatility & Risk

TERUMO Corp/ADR has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, Henry Schein has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Summary

Henry Schein beats TERUMO Corp/ADR on 7 of the 13 factors compared between the two stocks.

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.

Henry Schein Company Profile

Henry Schein, Inc. provides health care products and services to dental practitioners and laboratories, animal health clinics, physician practices, 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, and high-tech and digital restoration equipment, as well as equipment repair services. This segment also provides animal health products, such as branded and generic pharmaceuticals, surgical and consumable products and services, and equipment; and medical products comprising 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 animal health clinics. This segment also provides value-added practice solutions, which comprise financial services on a non-recourse basis, e-services, practice technology, network, and hardware services, as well as continuing education services for practitioners. The company was founded in 1932 and is headquartered in Melville, New York.

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