Patterson Companies (NASDAQ: PDCO) and Owens & Minor (NYSE:OMI) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.
This is a breakdown of current recommendations for Patterson Companies and Owens & Minor, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Owens & Minor||1||2||0||0||1.67|
Patterson Companies currently has a consensus price target of $42.29, indicating a potential upside of 9.75%. Owens & Minor has a consensus price target of $30.67, indicating a potential upside of 7.23%. Given Patterson Companies’ stronger consensus rating and higher probable upside, analysts clearly believe Patterson Companies is more favorable than Owens & Minor.
Risk & Volatility
Patterson Companies has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Owens & Minor has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.
Patterson Companies pays an annual dividend of $1.04 per share and has a dividend yield of 2.7%. Owens & Minor pays an annual dividend of $1.03 per share and has a dividend yield of 3.6%. Patterson Companies pays out 60.5% of its earnings in the form of a dividend. Owens & Minor pays out 65.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Patterson Companies has raised its dividend for 18 consecutive years.
Institutional and Insider Ownership
88.6% of Patterson Companies shares are owned by institutional investors. Comparatively, 97.8% of Owens & Minor shares are owned by institutional investors. 0.5% of Patterson Companies shares are owned by insiders. Comparatively, 1.7% of Owens & Minor shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Patterson Companies and Owens & Minor’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Owens & Minor||1.02%||11.64%||4.13%|
Earnings and Valuation
This table compares Patterson Companies and Owens & Minor’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Patterson Companies||$5.56 billion||0.65||$400.22 million||$1.72||22.40|
|Owens & Minor||$9.38 billion||0.19||$229.96 million||$1.58||18.10|
Patterson Companies has higher revenue, but lower earnings than Owens & Minor. Owens & Minor is trading at a lower price-to-earnings ratio than Patterson Companies, indicating that it is currently the more affordable of the two stocks.
Patterson Companies beats Owens & Minor on 12 of the 17 factors compared between the two stocks.
About Patterson Companies
Patterson Companies, Inc. is a value-added distributor focused on providing a customer experience to professionals in the dental and animal health markets. The Company operates through three segments: dental, animal health and corporate. Dental and Animal health are strategic business units that offer similar products and services to different customer bases. Dental provides a virtually complete range of consumable dental products, equipment and software and turnkey digital solutions. In addition it provides value-added services to dentists, dental laboratories, institutions and other healthcare professionals throughout North America. Animal health is a leading, full-line distributor of animal health products, services and technologies. Corporate segment is comprised of general and administrative expenses, including home office support costs in areas such as information technology, finance, legal, human resources and facilities.
About Owens & Minor
Owens & Minor, Inc. is a healthcare services company that connects the world of medical products to the point of care. The Company provides supply chain assistance to the providers of healthcare services and the manufacturers of healthcare products, supplies and devices. The Company’s segments include Domestic, International and Clinical & Procedural Solutions (CPS). The Domestic Segment offers a portfolio of products and services to healthcare providers and manufacturers in the United States. The Company also offers additional services to healthcare providers, including supplier management, analytics, inventory management, outsourced resource management, clinical supply management and business process consulting. The International segment includes its European distribution and logistics business. The CPS segment provides product-related solutions, helping manufacturers and healthcare providers source, assemble and deliver procedure kits to the point-of-care.
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