Reviewing NeoGenomics (NASDAQ:NEO) and Henry Schein (NASDAQ:HSIC)

Henry Schein (NASDAQ:HSIC) and NeoGenomics (NASDAQ:NEO) are both mid-cap healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.

Risk and Volatility

Henry Schein has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, NeoGenomics has a beta of 1.87, indicating that its stock price is 87% more volatile than the S&P 500.

Earnings & Valuation

This table compares Henry Schein and NeoGenomics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Henry Schein	$13.60 billion	0.70	$398.00 million	$3.43	24.75
NeoGenomics	$727.33 million	3.09	-$108.03 million	($0.25)	-69.52

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.

Insider & Institutional Ownership

96.6% of Henry Schein shares are owned by institutional investors. Comparatively, 98.5% of NeoGenomics shares are owned by institutional investors. 0.9% of Henry Schein shares are owned by insiders. Comparatively, 1.1% of NeoGenomics shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Henry Schein and NeoGenomics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Henry Schein	2.96%	15.97%	5.56%
NeoGenomics	-4.10%	-0.99%	-0.59%

Analyst Recommendations

This is a summary of recent recommendations for Henry Schein and NeoGenomics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Henry Schein	1	5	9	0	2.53
NeoGenomics	1	3	8	0	2.58

Henry Schein presently has a consensus target price of $93.27, indicating a potential upside of 9.88%. NeoGenomics has a consensus target price of $20.88, indicating a potential upside of 20.11%. Given NeoGenomics’ stronger consensus rating and higher probable upside, analysts clearly believe NeoGenomics is more favorable than Henry Schein.

Summary

Henry Schein beats NeoGenomics on 8 of the 14 factors compared between the two stocks.

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.

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.