Markets for the most part have held up. There are a couple of weak areas. The NQ has lagged both the...
Check-up on Dental Stocks
12/16/2014 9:00 am EST
The dental supply industry has been performing very well; investors have begun to see the industry as a good investment due to consistent sales growth, as well as advancements in new technology that allow the field to progress like never before, observes Jason Glasser in Systems & Forecasts.
Sirona Dental Systems (SIRO) is one of the companies that has been advancing the technology in the dental industry.
Sirona has recently been focusing on digital technology and has been the innovation leader in dentistry since the invention of the first electrically powered dental drill in 1887.
The company produces a variety of instruments, systems, programs, and more in order to help progress the dental field. This is a huge strength and thus gives them an advantage that separates Sirona from its competitors.
Sirona has the highest trailing P/E assigned in the industry; this is not surprising due to their emphasis on the technological side of dental supplies. Sirona also has the industry's highest profit margin, along with very low debt.
One of their most promising advancements in recent years is the production of their 3D X-Ray imaging tool, which allows a dentist to capture a patient’s entire jaw in a single span, which, in turn, reduces exposure to radiation. This is just one of Sirona’s many innovative products.
Henry Schein, Inc. (HSIC) has become a big name in the health industry in the past decade. They seem to have reached a point of solid, steady growth.
The great part about this company is that it doesn’t focus directly on dental supplies, although these make up a large portion of the company.
Schein focuses on the medical field as a whole. They even produce animal health products, such as animal dentistry equipment, blood analysis systems, instruments, and supplies.
The company’s sales reached a record $9.6 billion in 2013 and have grown at a compound annual rate of approximately 16% since Henry Schein became a public company in 1995.
Interest coverage ratios are used to determine how easily a company can pay interest on outstanding debt.
Analyzing the interest coverage ratio helps confirm that Sirona and Henry Schein look to be financially stable companies.
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