Comparing Aveanna Healthcare (NASDAQ:AVAH) & Henry Schein (NASDAQ:HSIC)
by Sarita Garza · The Markets DailyHenry Schein (NASDAQ:HSIC – Get Free Report) and Aveanna Healthcare (NASDAQ:AVAH – Get Free Report) are both mid-cap healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.
Risk and Volatility
Henry Schein has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Aveanna Healthcare has a beta of 1.97, suggesting that its share price is 97% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Henry Schein and Aveanna Healthcare, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Henry Schein | 1 | 5 | 9 | 0 | 2.53 |
| Aveanna Healthcare | 0 | 5 | 6 | 1 | 2.67 |
Henry Schein presently has a consensus target price of $92.93, indicating a potential upside of 9.54%. Aveanna Healthcare has a consensus target price of $14.06, indicating a potential upside of 2.82%. Given Henry Schein’s higher possible upside, research analysts clearly believe Henry Schein is more favorable than Aveanna Healthcare.
Insider & Institutional Ownership
96.6% of Henry Schein shares are owned by institutional investors. Comparatively, 88.0% of Aveanna Healthcare shares are owned by institutional investors. 0.9% of Henry Schein shares are owned by company insiders. Comparatively, 5.3% of Aveanna Healthcare shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Henry Schein and Aveanna Healthcare”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Henry Schein | $13.18 billion | 0.72 | $398.00 million | $3.43 | 24.73 |
| Aveanna Healthcare | $2.43 billion | 1.23 | $225.03 million | $1.23 | 11.11 |
Henry Schein has higher revenue and earnings than Aveanna Healthcare. Aveanna Healthcare 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 Henry Schein and Aveanna Healthcare’s 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% |
| Aveanna Healthcare | 10.56% | 80.70% | 7.42% |
Summary
Aveanna Healthcare beats Henry Schein on 8 of the 15 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 Aveanna Healthcare
Aveanna Healthcare Holdings Inc., a diversified home care platform company, provides pediatric and adult healthcare services in the United States. Its patient-centered care delivery platform allows patients to remain in their homes and minimizes the overutilization of high-cost care settings, such as hospitals or skilled nursing facilities. The company operates through three segments: Private Duty Services (PDS), Home Health & Hospice (HHH), and Medical Solutions (MS). The PDS segment offers PDN services, which include in-home skilled nursing services to medically fragile children and adults; nursing services in school settings in which its caregivers accompany patients to school; services to patients in its pediatric day healthcare centers; and employer of record support and personal care services, as well as in-clinic and home-based therapy services, such as physical, occupational, and speech services. The HHH segment provides home health services, including in-home skilled nursing services; physical, occupational, and speech therapy services; and medical social and aide services, as well as hospice services for patients and their families when a life-limiting illness no longer responds to cure-oriented treatments. The MS segment offers enteral nutrition supplies and other products, including formulas, supplies, and pumps to adults and children delivered on a periodic or as-needed basis. The company was incorporated in 2016 and is headquartered in Atlanta, Georgia.