Financial Analysis: SmileDirectClub (NASDAQ:SDC) & Straumann (NASDAQ:SAUHF)

SmileDirectClub (NASDAQ:SDC) and Straumann (OTCMKTS:SAUHF) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, valuation, earnings and institutional ownership.

Valuation & Earnings

This table compares SmileDirectClub and Straumann’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SmileDirectClub $750.43 million 6.13 -$114.51 million ($1.14) -10.46
Straumann $1.13 billion 14.47 $277.36 million N/A N/A

Straumann has higher revenue and earnings than SmileDirectClub.

Analyst Ratings

This is a breakdown of current recommendations for SmileDirectClub and Straumann, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SmileDirectClub 2 2 9 0 2.54
Straumann 0 0 0 0 N/A

SmileDirectClub currently has a consensus target price of $11.19, indicating a potential downside of 6.18%. Given SmileDirectClub’s higher probable upside, analysts clearly believe SmileDirectClub is more favorable than Straumann.

Institutional & Insider Ownership

17.7% of SmileDirectClub shares are held by institutional investors. Comparatively, 0.0% of Straumann shares are held by institutional investors. 66.0% of SmileDirectClub shares are held 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.

Profitability

This table compares SmileDirectClub and Straumann’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SmileDirectClub -25.06% -37.67% -16.98%
Straumann N/A N/A N/A

Summary

Straumann beats SmileDirectClub on 6 of the 10 factors compared between the two stocks.

SmileDirectClub Company Profile

SmileDirectClub, Inc. operates a teledentistry platform that provides member's with a customized clear aligner therapy treatment in the United States and internationally. The company manages the end-to-end process, which include marketing, aligner manufacturing, fulfillment, treatment by a doctor, and monitoring through completion of their treatment proprietary with a network of approximately 240 state licensed orthodontists and general dentists through its teledentistry platform, SmileCheck. It offers aligners, impression kits, whitening gels, and retainers. The company was founded in 2014 and is headquartered in Nashville, Tennessee.

Straumann Company Profile

Straumann Holding AG provides tooth replacement solutions worldwide. It researches, develops, manufactures, and supplies dental implants, instruments, biomaterials, CADCAM prosthetics, digital equipment, software, and clear aligners for applications in replacement, restorative, orthodontic, and preventative dentistry. The company offers dental implant systems, including tissue and bone level implant lines; ceramic, mini, and dental implant systems; and guided surgery and surgical instruments, as well as implant-borne prosthetics, such as tissue and bone level prosthetics. It also provides biomaterials, bone substitutes, membranes, biologics, and soft tissue management and oral healing products; digital solutions for dental labs, dentists, and centralized milling centers, as well as materials, third party systems, and guided surgery; surgical instruments comprising surgical cassettes, guided instruments, implant maintenance products, bone block fixation sets, bonerings, titanium pin sets, and other cassettes; and edentulous, pro arch fixed, prosthetic, and mini implant solutions for edentulous patients. In addition, the company offers esthetic restorations that include ceramic implant monotypes, ceramic implants, abutments, 3D-soft tissue grafts, biologics, and other solutions; Roxolid for use in implant dentistry; SLActive implants; Endogain for wound healing; and short and bone level tapered implants. Further, it provides Neodent systems; Medentika solutions; Equinox dental implant systems; Clear Correct aligners; and training and education services to its customers. The company offers its products to general dentists, specialists, and dental technicians/laboratories, as well as corporate customers, such as dental chains, distributors, hospitals, and university clinics in approximately 100 countries through a network of distribution subsidiaries and partners. Straumann Holding AG was founded in 1954 and is headquartered in Basel, Switzerland.

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