Dental supply stocks refer to stocks of companies that produce and distribute dental supplies and services.
As the industry is being primed for growth over the next few years, many are wondering, what are the best dental supply stocks to buy now?
Well, we took a look and made a list for you below.
Best Dental Supply Stocks To Track
The Procter & Gamble Company (NYSE: PG)
The Procter & Gamble Company (P&G) is the world’s largest producer and supplier of consumer packaged goods across its five divisions.
The company supplies beauty, grooming, fabric care, home care, and healthcare products.
Procter & Gamble supplies these products to consumers through grocery stores, drug stores, department stores, and e-commerce.
The company operates in over 70 countries globally and generates about 44% of its revenue from businesses in the United States and Canada.
Its earnings report for the last quarter ending in December 2022 shows that the company is leaning towards price hikes to drive growth.
In the last six months, organic revenue has risen by 5% in the fiscal second quarter compared to the previous quarter’s 7% boost as consumers become mindful of spending.
P&G predicts a rise in sales in 2023, indicating solid pricing power, and continues to get market share in staple stocks like beauty supplies and laundry care.
Analysts maintain a buy rating on the stock, trading roughly at $137.56 with a market capitalization of $324.52 billion and a dividend yield of 2.66%.
Envista Holdings Corporation (NYSE: NVST)
Envista Holdings Corporation engages in the production, distribution, and marketing of dental consumables, solutions, technology, and services in the United States and China.
The company cuts across two divisions.
The first is specialty products and technologies, which offers dental implant systems, guided surgery systems, and other orthodontic laboratory products.
The other division, equipment and consumables, provides dental equipment and supplies, including digital imaging systems, software, and other visualization/magnification systems.
The company’s revenue is forecast to grow by 5.5% per annum on average during the next three years, compared to a 7.4% growth forecast for the medical equipment industry in the US.
Envista Holdings turned out with quarterly earnings of $0.52 per share, surpassing the expectations of $0.49 per share.
It has also beaten consensus earnings forecasts three times in the last four quarters.
The company’s shares have outperformed the market so far, increasing by 23.3% since the beginning of the year.
As of February, Envista’s share is trading roughly at $38.66 with a market capitalization of $6.31 billion.
NVST predicts an annual revenue of $2.57 billion, which translates to a 30.06% year-over-year increase.
Aesthetic Medical International Holdings Group (NASDAQ: AIH)
Aesthetic Medical International Holdings Group Limited, based in China, is a company that provides aesthetic medical services.
It offers surgical and non-surgical aesthetic services such as eye surgery, rhinoplasty, and minimally invasive.
It also offers energy-based treatments, including laser, ultrasound, and ultraviolet light treatments.
AIH was founded in 1997, has 15 treatment centers with over 1,400 employees in Hong Kong and Singapore, and is headquartered in Shenzhen, the People’s Republic of China.
In the six-month financial period ending in September 2022 (HY2023), the company’s revenue increased by 24.5% ($1.3 million) from $5.3 million when compared to a similar period (HY2022).
The growth was largely attributed to the opening of two additional aesthetic clinics in Singapore.
Additionally, the company expanded existing medical aesthetic outlets into larger units with improved marketing.
According to analysts, the average rating for AIH stock is “buy,” with a forecast of a 687.65% increase from the latest price.
The company’s stock is roughly trading at $1.30 per share. It has a market capitalization of $56.37 million and annual revenue of $101.6 million.
Dentsply Sirona, Inc. (NASDAQ: XRAY)
Dentsply Sirona is a global designer and manufacturer of dental solutions and technologies.
The company runs two divisions: technologies and equipment and consumables.
The technologies and equipment division oversees dental technology, equipment, and healthcare consumable products such as dental implants, laboratory dental products, and computer-aided design.
And the consumable division provides preventive, restorative instruments, endodontic, and orthodontic dental products.
Dentsply Sirona offers innovative and high-quality dental and oral health products, as well as other consumable medical devices, to clients globally for improved care.
The company is well positioned for expansion on a strong product lineup and ongoing investment in R&D despite the 2% decline experienced by the industry in the past year.
Dentsply’s launch of PrimeScan, a digital impression scanner, and Primemill, among other products, has boosted the company’s top line over the past couple of years.
In the third quarter, the company saw clear aligners expand by double digits, Europe performed well, and the demand for imaging equipment remained high.
Dentsply has an excellent new product pipeline that will aid its performance in 2023 and beyond.
Earnings are expected to increase by 3.9% over the next five years.
The company is roughly selling at $38.07 per share with a market cap of $8.18 billion and a yearly revenue of $3.92 million.
BIOLASE, Inc. (NASDAQ: BIOL)
Biolase is a world-leading dental laser company engaged in the development and marketing of laser products for the dental and medical industries.
The company operates through waterlase (all-tissue) systems and diode (soft-tissue) systems products.
The waterlase systems use a patented mixture of water and laser energy to carry out procedures using drills, scalpels, and other dental tools for cutting soft and hard tissue.
The diode systems conduct cosmetic procedures, such as teeth whitening, as well as soft tissue, pain therapy, and other medical procedures.
The dental lasers market is forecasted to be worth $492.2 million in 2023 and $737.4 million by 2033.
This is due to an increased demand for better dental care combined with the overall popularity of cosmetic dentistry.
Revenue for the last quarter increased by 33% year-over-year and 6% from the previous quarter, with a 6% year-over-year decrease in debt.
Biolase is roughly trading at $0.51 per share with a market cap of $12.33 million.
Henry Schein (NASDAQ: HSIC)
Henry Schein is a world-leading company that deals with the provision of healthcare products and services to clinics, office-based dental, animal health, and medical practitioners.
The company was founded in 1932 and is headquartered in Melville, New York.
Henry Schein operates through two divisions: healthcare distribution and technology and value-added services.
The healthcare distribution division supplies dental products, including infection-control products, dental implants, gypsum, abrasives, dental chairs, as well as equipment repair services.
The other division offers software, technology, and value-added services that include practice management software systems for dental and medical practitioners.
Henry Schein’s stock is roughly trading at $78.31 with a per-earning ratio of $16.56.
The company has a market cap of $10.28 billion and annual revenue of $12.65 billion.
Patterson Companies (NASDAQ: PDCO)
Patterson operates as a leading distributor in the dental, veterinary, and rehabilitation supply markets in the United States, the United Kingdom, and Canada.
The company operates through two divisions: Patterson Dental and Patterson Animal Health.
Both provide similar services and products to different customer bases.
Before expanding into a major supplier of animal health products to veterinarians and production firms through the 2015 acquisition of Animal Health International, Patterson began as a wholesaler of dental products in 1877.
The company had an unexpected earning estimate of 10.53% in the last reported quarter, and in the third quarter of fiscal 2023, sales increased by 1.1% year-over-year in the management segment.
The company’s stock is roughly trading at $26.52 per share, has a market cap of $2.57 billion, and annual revenue of $6.5 billion.
Are Dental Supply Stocks a Good Investment?
The dental industry is primed for growth over the next several years due to population growth, aging populations, and increasing demand for cosmetic dentistry.
Many companies are investing in research and development to create more efficient and cost-effective dental products, which can lead to increased profits for investors.
In addition to that, dental supply companies often have strong brands, which can bring in more revenue and increase the value of the stocks.
Finally, investing in dental supply stocks can be a relatively low-risk opportunity for investors.
The dental industry is highly regulated, and the products are in consistent demand, meaning that there is less potential for drastic losses due to market fluctuations.
Additionally, dental supply companies often have long-term contracts with their customers, providing them with a steady stream of income.
FAQs
Who Is The Largest Dental Supplier?
It’s hard to pinpoint the largest global dental supplier, but Henry Schein is believed to be the biggest dental supplier in North America at the moment. The company has been in business for roughly 90 years and has grown a massive customer base.
What Companies Make Dental Equipment?
There is a slew of companies that produce dental equipment across the United States and beyond. Some of these companies include Biolase, Dental Spirona as well as Procter & Gamble.
How Big Is The Dental Supply Industry?
The dental supply industry was estimated to be worth roughly $10.6 Billion in 2022, and it is expected to be worth $11.2 Billion in 2023, according to Grandview research.
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