UDG Healthcare (LON:UDG) and Dechra Pharmaceuticals PLC (DPH.L) (LON:DPH) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.
Valuation & Earnings
This table compares UDG Healthcare and Dechra Pharmaceuticals PLC (DPH.L)'s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
UDG Healthcare | £1.28 billion | 1.52 | N/A | GBX 36.80 | 20.96 |
Dechra Pharmaceuticals PLC (DPH.L) | £515.10 million | 7.20 | N/A | GBX 32.80 | 104.57 |
UDG Healthcare is trading at a lower price-to-earnings ratio than Dechra Pharmaceuticals PLC (DPH.L), indicating that it is currently the more affordable of the two stocks.
Dividends
UDG Healthcare pays an annual dividend of GBX 0.17 per share and has a dividend yield of 0.0%. Dechra Pharmaceuticals PLC (DPH.L) pays an annual dividend of GBX 0.32 per share and has a dividend yield of 0.0%. UDG Healthcare pays out 0.5% of its earnings in the form of a dividend. Dechra Pharmaceuticals PLC (DPH.L) pays out 1.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. UDG Healthcare is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a summary of recent ratings and recommmendations for UDG Healthcare and Dechra Pharmaceuticals PLC (DPH.L), as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
UDG Healthcare | 0 | 1 | 5 | 0 | 2.83 |
Dechra Pharmaceuticals PLC (DPH.L) | 0 | 2 | 2 | 0 | 2.50 |
UDG Healthcare currently has a consensus price target of GBX 897.50, suggesting a potential upside of 16.33%. Dechra Pharmaceuticals PLC (DPH.L) has a consensus price target of GBX 3,077.50, suggesting a potential downside of 10.28%. Given UDG Healthcare's stronger consensus rating and higher probable upside, research analysts clearly believe UDG Healthcare is more favorable than Dechra Pharmaceuticals PLC (DPH.L).
Profitability
This table compares UDG Healthcare and Dechra Pharmaceuticals PLC (DPH.L)'s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
UDG Healthcare | N/A | N/A | N/A |
Dechra Pharmaceuticals PLC (DPH.L) | N/A | N/A | N/A |
Summary
UDG Healthcare beats Dechra Pharmaceuticals PLC (DPH.L) on 7 of the 9 factors compared between the two stocks.