How Does Patterson Companies Compare to Its Peers?

In this article, we’ll compare Patterson Companies against its peers. The PE (price-to-earnings) ratios of Patterson Companies (PDCO), Henry Schein (HSIC), DENTSPLY International (XRAY), and VCA (WOOF) are 23.6x, 27.1x, 31.5x, and 25.9x, respectively, as of November 24, 2015.

The PBV (price-to-book value) ratios of Patterson Companies, Henry Schein, DENTSPLY, and VCA, are 3.0x, 4.4x, 3.8x, and 3.8x, respectively.

Thus, peers have outperformed Patterson Companies based on PE and PBV.

The SPDR S&P Health Care Services ETF (XHS) invests 2.3% of its holdings in Patterson Companies.

The iShares MSCI USA ESG Select Social Index Fund (KLD) invests 2.2% of its holdings in Patterson Companies. The ETF tracks an index of 250 companies with high environmental, social, and governance (or ESG) factor scores as calculated by MSCI.

The Guggenheim S&P Equal Weight Health Care ETF (RYH) invests 1.9% of its holdings in Patterson Companies. The ETF tracks an equal-weighted index of US healthcare companies taken from the S&P 500 Index.

Now let’s look at a comparison between Patterson Companies and ETFs that invest in it:

• The year-to-date price movements of Patterson Companies, XHS, KLD, and RYH are -3.2%, 4.3%, 0.70%, and 6.3%, respectively.
• The PE ratios of Patterson Companies, XHS, KLD, and RYH are 23.6x, 46.4x, 20.3x, and 29.7x, respectively.
• The PBV ratios of Patterson Companies, XHS, KLD, and RYH are 3.0x, 2.8x, 3.7x, and 3.8x, respectively.

Thus, ETFs have outperformed Patterson Companies based on price movement, PE, and PBV.