Financial Contrast: Henry Schein (NASDAQ:HSIC) versus Castle Biosciences (NASDAQ:CSTL)

Henry Schein (NASDAQ:HSIC) and Castle Biosciences (NASDAQ:CSTL) are both healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, profitability, dividends, valuation, analyst recommendations and earnings.

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	-6.10%	-4.89%	-4.06%

Volatility and Risk

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.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Henry Schein	$13.73 billion	0.69	$398.00 million	$3.65	23.62
Castle Biosciences	$344.23 million	3.03	-$24.16 million	($0.77)	-43.88

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 Recommendations

This is a breakdown of recent ratings and price targets for Henry Schein and Castle Biosciences, as reported 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 8.53%. Castle Biosciences has a consensus price target of $46.50, suggesting a potential upside of 37.61%. Given Castle Biosciences’ stronger consensus rating and higher possible upside, analysts plainly believe Castle Biosciences is more favorable than Henry Schein.

Institutional & Insider 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 hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

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

About Henry Schein

Henry Schein, Inc. is a global distributor of health care products and services, serving dental and medical practitioners, veterinary professionals, and other health care organizations. The company traces its roots to a pharmacy founded by Henry and Esther Schein in Queens, New York, in 1932. Its offerings include medical and dental supplies, equipment, pharmaceuticals, vaccines, and diagnostic products. Henry Schein also provides practice-management software, technology solutions, and business services designed to help health care professionals manage their operations.

About Castle Biosciences

Castle Biosciences, Inc. is a molecular diagnostics company that develops and commercializes tests intended to help physicians make personalized treatment and care decisions. Its tests analyze biological features of tissue to provide information about disease behavior and patient risk. The company’s portfolio includes DecisionDx tests for conditions such as cutaneous melanoma, cutaneous squamous cell carcinoma and uveal melanoma. It also offers TissueCypher, a test designed to assess progression risk in patients with Barrett’s esophagus.