Owens & Minor (NYSE:OMI) and TERUMO CORP/ADR (OTCMKTS:TRUMY) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.
Insider and Institutional Ownership
88.9% of Owens & Minor shares are owned by institutional investors. 2.0% 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 is poised for long-term growth.
This is a summary of current recommendations and price targets for Owens & Minor and TERUMO CORP/ADR, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Owens & Minor||2||3||0||0||1.60|
Owens & Minor currently has a consensus price target of $12.90, suggesting a potential upside of 81.43%. Given Owens & Minor’s higher probable upside, research analysts clearly believe Owens & Minor is more favorable than TERUMO CORP/ADR.
Owens & Minor pays an annual dividend of $1.04 per share and has a dividend yield of 14.6%. TERUMO CORP/ADR pays an annual dividend of $0.21 per share and has a dividend yield of 0.4%. Owens & Minor pays out 64.6% of its earnings in the form of a dividend. TERUMO CORP/ADR pays out 9.6% 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. Owens & Minor has increased its dividend for 19 consecutive years. Owens & Minor is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Owens & Minor and TERUMO CORP/ADR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Owens & Minor||-1.57%||9.50%||2.32%|
Volatility & Risk
Owens & Minor has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500. Comparatively, TERUMO CORP/ADR has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500.
Valuation & Earnings
This table compares Owens & Minor and TERUMO CORP/ADR’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Owens & Minor||$9.32 billion||0.05||$72.79 million||$1.61||4.42|
|TERUMO CORP/ADR||$5.31 billion||4.20||$821.65 million||$2.19||26.80|
TERUMO CORP/ADR has lower revenue, but higher earnings than Owens & Minor. Owens & Minor 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.
TERUMO CORP/ADR beats Owens & Minor on 8 of the 15 factors compared between the two stocks.
Owens & Minor Company Profile
Owens & Minor, Inc., together with its subsidiaries, operates as a healthcare services company in the United States, the United Kingdom, Ireland, France, Germany, and other European countries. It operates through three segments: Domestic, International, and Proprietary Products. The company offers supply chain assistance to the providers of healthcare services; and the manufacturers of healthcare products, supplies, and devices. Its service portfolio consists of procurement, inventory management, delivery, and sourcing of products for the healthcare market; and portfolio of medical and surgical supplies comprises branded products purchased from manufacturers and proprietary private-label products. The company also provides supplier management, analytics, inventory management, outsourced resource management, clinical supply management, and business process consulting services; warehousing and transportation services, such as storage, controlled-substance handling, cold-chain, emergency and export delivery, and pick and pack services; and other services, including order-to-cash, re-labeling, customer, and returns management services. In addition, it provides custom procedure trays; and sourcing services comprising manufacturing capacity management, container load optimization, customs compliance assurance, and others. The company serves hospitals, integrated healthcare systems, group purchasing organizations, the U.S. federal government, and biotechnology industries, as well as manufacturers of life-science and medical devices and supplies, including pharmaceuticals. It delivers its services through internal fleet, common carrier, or parcel services, as well as cold-chain delivery trucks. Owens & Minor, Inc. was founded in 1882 and is headquartered in Mechanicsville, Virginia.
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.
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