NeoGenomics (NASDAQ:NEO – Get Free Report) and Henry Schein (NASDAQ:HSIC – Get Free Report) are both mid-cap healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.
Analyst Recommendations
This is a summary of recent recommendations and price targets for NeoGenomics and Henry Schein, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NeoGenomics | 1 | 3 | 8 | 0 | 2.58 |
| Henry Schein | 1 | 5 | 9 | 0 | 2.53 |
NeoGenomics presently has a consensus price target of $20.88, indicating a potential upside of 21.56%. Henry Schein has a consensus price target of $93.27, indicating a potential upside of 7.87%. Given NeoGenomics’ stronger consensus rating and higher probable upside, analysts clearly believe NeoGenomics is more favorable than Henry Schein.
Valuation and Earnings
This table compares NeoGenomics and Henry Schein”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NeoGenomics | $727.33 million | 3.06 | -$108.03 million | ($0.25) | -68.69 |
| Henry Schein | $13.18 billion | 0.73 | $398.00 million | $3.43 | 25.21 |
Henry Schein has higher revenue and earnings than NeoGenomics. NeoGenomics is trading at a lower price-to-earnings ratio than Henry Schein, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares NeoGenomics and Henry Schein’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NeoGenomics | -4.10% | -0.99% | -0.59% |
| Henry Schein | 2.96% | 15.97% | 5.56% |
Insider and Institutional Ownership
98.5% of NeoGenomics shares are held by institutional investors. Comparatively, 96.6% of Henry Schein shares are held by institutional investors. 1.1% of NeoGenomics shares are held by company insiders. Comparatively, 0.9% of Henry Schein shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Risk & Volatility
NeoGenomics has a beta of 1.87, suggesting that its stock price is 87% more volatile than the S&P 500. Comparatively, Henry Schein has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.
Summary
Henry Schein beats NeoGenomics on 8 of the 14 factors compared between the two stocks.
About NeoGenomics
NeoGenomics, Inc. operates a network of cancer-focused testing laboratories in the United States and the United Kingdom. It operates through Clinical Services and Advanced Diagnostics segments. The company offers testing services to hospitals, academic centers, pathologists, oncologists, clinicians, pharmaceutical companies, and clinical laboratories. It also provides cytogenetics testing services to study normal and abnormal chromosomes and their relationship to diseases; fluorescence in-situ hybridization testing services that focus on detecting and locating the presence or absence of specific DNA sequences and genes on chromosomes; flow cytometry testing services to measure the characteristics of cell populations; and immunohistochemistry and digital imaging testing services to localize cellular proteins in tissue section, as well as to allow clients to visualize scanned slides, and perform quantitative analysis for various stains. In addition, the company also provides molecular testing services, which focus on the analysis of DNA and/or RNA, and the structure and function of genes at the molecular level; morphologic analysis, which is the process of analyzing cells under the microscope by a pathologist for the purpose of diagnosis; and testing services in support of its pharmaceutical clients' oncology programs covering discovery and commercialization. NeoGenomics, Inc. was founded in 2001 and is headquartered in Fort Myers, Florida.
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.
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