How Does Sirona Dental Systems Compare to Its Peers?

Gabriel Kane
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Sirona Dental Systems’ Revenue and Income Rose in Fiscal 4Q15

(Continued from Prior Part)

Sirona Dental Systems and its peers

In this article, we’ll compare Sirona Dental Systems with its peers and a few ETFs that invest in it:

  • The PE (price-to-earnings) ratios of Sirona Dental Systems (SIRO), Danaher Corporation (DHR), Align Technology (ALGN), and Patterson Companies (PDCO) are 33.5x, 27.3x, 40.7x, and 25.0x, respectively, as of November 20, 2015.

  • The PBV (price-to-book value) ratios of Sirona Dental Systems, Danaher Corporation, Align Technology, and Patterson Companies are 4.7x, 2.9x, 6.7x, and 3.2x, respectively.

Thus, Sirona Dental Systems has outperformed most of its peers based on PE and PBV ratios.

ETFs that invest in Sirona Dental Systems

The SPDR S&P Health Care Equipment ETF (XHE) invests 1.7% of its holdings in Sirona Dental Systems. The ETF tracks an equal-weighted index of US healthcare equipment and supplies companies.

The iShares Dow Jones US Medical Devices ETF (IHI) invests 1.5% of its holdings in Sirona Dental Systems. The ETF tracks a market cap–weighted index of manufacturers and distributors of medical devices in the United States.

The PowerShares S&P MidCap Low Volatility Portfolio (XMLV) invests 1.4% of its holdings in Sirona Dental Systems. The ETF tracks a volatility-weighted index of the 80 least volatile S&P MidCap 400 companies.

Comparing Sirona Dental Systems and its ETFs

Now let’s compare Sirona Dental Systems with the above-mentioned ETFs:

  • The YTD (year-to-date) price movements of Sirona Dental Systems, XHE, IHI, and XMLV are 25.0%, 5.9%, 7.8%, and 6.4%, respectively.

  • The PE ratios of Sirona Dental Systems, XHE, IHI, and XMLV are 33.5x, 95.9x, 36.8x, and 21.3x, respectively.

  • The PBV ratios of Sirona Dental Systems, XHE, IHI, and XMLV are 4.7x, 3.8x, 3.4x, and 2.4x, respectively.

According to the above findings, these ETFs are mostly outperforming Sirona Dental Systems based on PE ratio. However, Sirona Dental Systems has outperformed these ETFs based on price movement and PBV ratio.

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