CareFusion (NYSE: CFN) and Align Technology (NASDAQ:ALGN) are both healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, risk, valuation and profitability.

Analyst Ratings

This is a summary of current recommendations for CareFusion and Align Technology, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CareFusion 0 0 0 0 N/A
Align Technology 0 0 10 0 3.00

Align Technology has a consensus target price of $209.30, suggesting a potential upside of 3.11%. Given Align Technology’s higher possible upside, analysts clearly believe Align Technology is more favorable than CareFusion.

Profitability

This table compares CareFusion and Align Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CareFusion 16.18% 12.80% 7.62%
Align Technology 19.18% 23.87% 16.93%

Earnings and Valuation

This table compares CareFusion and Align Technology’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CareFusion N/A N/A N/A N/A N/A
Align Technology $1.24 billion 13.12 $306.55 million $2.92 69.51

Align Technology has higher revenue and earnings than CareFusion.

Insider & Institutional Ownership

81.4% of Align Technology shares are owned by institutional investors. 1.6% of Align Technology shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Align Technology beats CareFusion on 8 of the 8 factors compared between the two stocks.

CareFusion Company Profile

CareFusion Corporation is a global medical technology company. The Company operates in two business segments: Medical Systems and Procedural Solutions. The Company’s primary product brands include: Alaris intravenous (IV) infusion systems; Pyxis and Rowa automated medication dispensing and supply management systems; AVEA, Vela and LTV Series respiratory ventilators; ChloraPrep skin antiseptic products; MaxGuard, MaxPlus, MaxZero, SmartSite and Texium needle-free IV infusion valves, administration sets and accessories; V. Mueller and Snowden-Pencer open surgical and laparoscopic instrumentation; PleurX, Achieve and Temno interventional specialty products; AirLife disposable ventilator circuits and oxygen masks used for providing respiratory therapy; Vital Signs single-use consumables for respiratory care and anesthesiology; Jaeger and SensorMedics cardiopulmonary diagnostic equipment, and MedMined data mining surveillance software and analytics.

Align Technology Company Profile

Align Technology, Inc. designs, manufactures and markets a system of clear aligner therapy, intra-oral scanners and computer-aided design/computer-aided manufacturing (CAD/CAM) digital services used in dentistry, orthodontics and dental records storage. The Company operates through two segments: Clear Aligner segment and Scanner and Services (Scanner) segment. The Clear Aligner segment consists of its Invisalign System, which includes Invisalign Full, Teen and Assist (Comprehensive Products), Express/Lite (Non-Comprehensive Products) and Vivera Retainers, along with its training and ancillary products for treating malocclusion (Non-Case). The Scanner segment consists of intra-oral scanning systems and other services available with the intra-oral scanners that provide digital alternatives to the traditional cast models. The Scanner segment includes its iTero scanner and OrthoCAD services.

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