Henry Schein (NASDAQ:HSIC – Get Free Report) and Castle Biosciences (NASDAQ:CSTL – Get Free Report) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.
Risk and Volatility
Henry Schein has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Castle Biosciences has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.
Profitability
This table compares Henry Schein and Castle Biosciences’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Henry Schein | 3.07% | 16.39% | 5.58% |
| Castle Biosciences | -5.43% | -4.15% | -3.45% |
Valuation and Earnings
This table compares Henry Schein and Castle Biosciences”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Henry Schein | $13.18 billion | 0.74 | $398.00 million | $3.65 | 24.24 |
| Castle Biosciences | $344.23 million | 3.03 | -$24.16 million | ($0.77) | -44.32 |
Henry Schein has higher revenue and earnings than Castle Biosciences. Castle Biosciences is trading at a lower price-to-earnings ratio than Henry Schein, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and recommmendations for Henry Schein and Castle Biosciences, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Henry Schein | 1 | 5 | 8 | 0 | 2.50 |
| Castle Biosciences | 1 | 1 | 8 | 1 | 2.82 |
Henry Schein presently has a consensus price target of $93.57, suggesting a potential upside of 5.77%. Castle Biosciences has a consensus price target of $46.50, suggesting a potential upside of 36.26%. Given Castle Biosciences’ stronger consensus rating and higher possible upside, analysts plainly believe Castle Biosciences is more favorable than Henry Schein.
Insider and Institutional Ownership
96.6% of Henry Schein shares are held by institutional investors. Comparatively, 92.6% of Castle Biosciences shares are held by institutional investors. 0.9% of Henry Schein shares are held by insiders. Comparatively, 6.1% of Castle Biosciences shares are held 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.
Summary
Henry Schein beats Castle Biosciences 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 Castle Biosciences
Castle Biosciences, Inc., a molecular diagnostics company, provides testing solutions for the diagnosis and treatment of dermatologic cancers, Barrett's esophagus, uveal melanoma, and mental health conditions. It offers DecisionDx-Melanoma, a risk stratification gene expression profile (GEP) test to identify the risk of metastasis for patients diagnosed with invasive cutaneous melanoma; DecisionDx-SCC, a proprietary risk stratification GEP test for patients with cutaneous squamous cell carcinoma; MyPath Melanoma, a test used for patients with difficult-to-diagnose melanocytic lesions; and TissueCypher, a spatial omics test to predict future development of high-grade dysplasia and/or esophageal cancer in patients with non-dysplastic, indefinite dysplasia, or low-grade dysplasia Barrett's esophagus. In addition, the company provides DecisionDx-UM test, a proprietary risk stratification GEP test that predicts the risk of metastasis for patients with uveal melanoma; and IDgenetix, a pharmacogenomic test that helps guide drug treatment for major depressive disorder, schizophrenia, bipolar disorder, anxiety disorders, social phobia, obsessive-compulsive personality disorder, post-traumatic stress disorder, and attention deficit hyperactivity disorder. It offers its products to skin cancer, gastroenterology, and mental health markets. The company was incorporated in 2007 and is headquartered in Friendswood, Texas.
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