Cardinal Health (NYSE: CAH) and Bio-Rad Laboratories (NYSE:BIO) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.
Institutional and Insider Ownership
90.0% of Cardinal Health shares are held by institutional investors. Comparatively, 64.5% of Bio-Rad Laboratories shares are held by institutional investors. 1.0% of Cardinal Health shares are held by company insiders. Comparatively, 28.3% of Bio-Rad Laboratories shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility and Risk
Cardinal Health has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Bio-Rad Laboratories has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.
Cardinal Health pays an annual dividend of $1.85 per share and has a dividend yield of 2.8%. Bio-Rad Laboratories does not pay a dividend. Cardinal Health pays out 32.2% of its earnings in the form of a dividend. Cardinal Health has raised its dividend for 13 consecutive years.
This is a breakdown of current recommendations and price targets for Cardinal Health and Bio-Rad Laboratories, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cardinal Health currently has a consensus target price of $73.55, suggesting a potential upside of 12.44%. Bio-Rad Laboratories has a consensus target price of $298.75, suggesting a potential upside of 13.75%. Given Bio-Rad Laboratories’ stronger consensus rating and higher probable upside, analysts clearly believe Bio-Rad Laboratories is more favorable than Cardinal Health.
This table compares Cardinal Health and Bio-Rad Laboratories’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Cardinal Health and Bio-Rad Laboratories’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cardinal Health||$129.98 billion||0.16||$1.29 billion||$5.75||11.38|
|Bio-Rad Laboratories||$2.16 billion||3.62||$114.74 million||$3.81||68.93|
Cardinal Health has higher revenue and earnings than Bio-Rad Laboratories. Cardinal Health is trading at a lower price-to-earnings ratio than Bio-Rad Laboratories, indicating that it is currently the more affordable of the two stocks.
Cardinal Health beats Bio-Rad Laboratories on 9 of the 17 factors compared between the two stocks.
Cardinal Health Company Profile
Cardinal Health, Inc. is a healthcare services and products company. The Company operates through two segments: Pharmaceutical and Medical. The Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, over-the-counter healthcare and consumer products. This segment also operates nuclear pharmacies and cyclotron facilities; provides pharmacy management services to hospitals, as well as medication therapy management and patient outcomes services to hospitals, other healthcare providers and payers, and provides services to healthcare companies. The Medical segment distributes a range of medical, surgical and laboratory products, and provides services to hospitals, ambulatory surgery centers, clinical laboratories and other healthcare providers. This segment also manufactures, sources and develops its own Cardinal Health brand medical and surgical products. It provides post-acute care management and transition services, and software to hospitals.
Bio-Rad Laboratories Company Profile
Bio-Rad Laboratories, Inc. (Bio-Rad) is a manufacturer and distributor of its life science research and clinical diagnostics products. The Company operates through two segments: Life Science and Clinical Diagnostics. It manufactures and supplies the life science research, healthcare, analytical chemistry and other markets with a range of products and systems used to separate complex chemical and biological materials and to identify, analyze and purify their components. The Life Science segment develops, manufactures, sells and services reagents, apparatus and instruments used for biological research. The Clinical Diagnostics segment develops, manufactures, sells and services automated test systems, informatics systems, test kits and specialized quality controls for the healthcare market. As of December 31, 2016, Bio-Rad sold more than 8,000 products and services to a client base, including scientific research, healthcare, education and government customers around the world.
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