Seven Publicly Traded Dental Companies Worth Considering for Portfolio Growth

The dental care industry has long been an overlooked sector in many investment portfolios, despite its essential role in healthcare and consistent revenue streams. With rising awareness about oral health, advancing technology, and an aging population seeking preventive dental care, publicly traded dental companies are increasingly attracting institutional attention. Unlike speculative growth stocks, many dental-focused businesses offer the combination of steady cash flows, recurring revenues, and strategic brand portfolios that appeal to value-oriented investors.

The market opportunity extends beyond traditional dental clinics. Startup disruption in teeth straightening—with companies like Candid and Smile Direct Club offering more affordable alternatives to established players—has validated the market’s appetite for innovation. Yet established publicly traded dental companies possess distribution networks, brand recognition, and financial resources that newer competitors cannot easily replicate. This article explores seven compelling investment candidates across different segments of the dental market.

Henry Schein (HSIC): Market Leader in Dental Distribution

Henry Schein stands as the dominant force in dental product distribution globally. The company supplies more than 120,000 branded products alongside 180,000 private-label items to dental practitioners and medical professionals. Its market position is nearly unassailable: approximately 90% of U.S. dental practices maintain active relationships with Henry Schein, making it indispensable to the industry infrastructure.

The Melville, New York-based company has demonstrated solid operational performance. In 2018, Henry Schein reported revenues of $13.2 billion, representing 5.9% year-over-year growth, while non-GAAP earnings climbed 11.4% to $635.3 million—both marking record highs for the organization. This revenue growth reflects its essential position within dental supply chains that generate consistent demand regardless of economic conditions.

From a valuation perspective, Henry Schein has historically traded at attractive entry points relative to its historical ranges. The company completed a strategic pivot by spinning off its animal health business, allowing management to focus exclusively on healthcare distribution. This streamlined focus positions Henry Schein for sustainable long-term growth as dental practices continue expanding their operations globally.

3D Systems (DDD): Innovation in Digital Dental Solutions

3D Systems represents the intersection of manufacturing technology and dental innovation. The company manufactures 3D-printed dental products including dentures, crowns, and surgical guides—a segment with substantial addressable market potential. As CEO Vyomesh Joshi noted, “There are billions of opportunities here, since virtually anybody could benefit from 3-D printed dental solutions.”

The company’s transformation from a struggling 3D printer manufacturer to a focused dental technology specialist demonstrates effective portfolio management. On a non-GAAP basis, 3D Systems swung from a $1.7 million loss in 2017 to a $16.5 million gain in 2018, supported by 6% revenue growth to $688 million. This inflection point reflects successful market adoption of its dental-specific solutions.

Valuation metrics suggest meaningful upside potential. Trading at 1.8 times revenue—significantly below its five-year average price-to-sales ratio—DDD offers investors an opportunity to participate in the digital transformation of dental manufacturing. The company’s dental segment continues to capture market share from traditional manufacturing methods as practitioners recognize efficiency and customization benefits.

Align Technology (ALGN): Revolutionizing Teeth Alignment Systems

Align Technology manufactures Invisalign, the clear aligner system that has fundamentally disrupted the orthodontics market. While competitive pressure from startups like Candid—offering teeth straightening at approximately $4,000 over 24 months (roughly $3,000-$4,000 less than competing solutions)—has gained attention, Align’s diversified revenue streams provide substantial competitive moats.

The company’s 2018 results demonstrate robust operational momentum. Revenues surged 34% to $2 billion (an all-time record) on the back of 32% volume growth in Invisalign units. Net profits reached $400.2 million, up 73% year-over-year. More significantly, the company’s iTero scanner line grew 68% in 2018 and now represents 14% of overall revenue—up 290 basis points from 2017.

This scanner business illustrates Align’s strategic positioning beyond simple product sales. By embedding its technology into dental practice workflows, the company creates ongoing revenue streams and switching costs that protect market share. The competitive dynamics favoring Align suggest that even with pricing pressure, the company’s integrated ecosystem maintains pricing power and customer loyalty that supports sustained profitability.

Dentsply Sirona (XRAY): Comprehensive Dental Equipment and Systems

Dentsply Sirona represents the consolidation of two major dental equipment manufacturers. In 2015, Dentsply acquired Sirona Dental Systems for $5.5 billion, creating a diversified powerhouse serving dental practitioners with integrated solutions. The combined company operates across four critical segments: Dental CAD/CAM Systems, Imaging Systems, Treatment Centers, and Instruments—with the first two segments historically representing approximately 70% of revenues.

The merger integration presented operational challenges, requiring a comprehensive restructuring to eliminate redundancies and clarify strategic priorities. Management has implemented a turnaround plan involving business simplification and staffing reductions of up to 8%. While integration efforts initially pressured near-term results, analysts project the company will achieve $2.64 per share earnings by fiscal 2020—its strongest performance since 2016.

The company’s 2019 performance demonstrates successful stabilization. With meaningful revenue contributions across multiple geographic markets and product categories, Dentsply Sirona’s diversified portfolio positions it to weather economic cycles while capturing industry consolidation trends. Patient investors who accumulated shares during weakness in the mid-$40s range positioned themselves favorably for the company’s recovery trajectory.

Patterson Companies (PDCO): Diversified Healthcare Distribution

Patterson Companies distributes dental and animal health products to practitioners across North America. The company’s integrated distribution network has generated sustainable cash flows, a critical metric overlooked by many growth-focused investors. In the nine months ended January 27, 2019, Patterson generated operating cash flow of $76.3 million (91% higher than the prior year period), converting this into $42.4 million in free cash flow after capital expenditures—representing 77% of net income.

While top-line performance has remained modest, with fiscal 2019 revenues increasing just 1.8% to $4.14 billion, the company’s cash generation capacity provides a margin of safety. Patterson’s animal health business (representing 58% of revenues) adds meaningful diversification, protecting revenue streams when economic cycles shift. This stability underpins the company’s 4.8% dividend yield, supported by substantial free cash flow generation.

The company’s current restructuring initiatives aim to drive operational efficiency and focus management on higher-margin business segments. Income-oriented investors can benefit from Patterson’s stable cash generation while awaiting the strategic initiatives to meaningfully improve profitability metrics—a “get paid while you wait” scenario that has historically created value for patient capital.

Procter & Gamble (PG): Oral Care Market Dominance through Oral-B

Procter & Gamble owns Oral-B, the electric toothbrush brand that has dominated the category since its introduction in 1950. Originally developed by California periodontist Dr. Robert Hutson, the brand was subsequently acquired through a series of transactions—sold to Cooper Laboratories before transitioning to Gillette in 1984 for $188.5 million. Oral-B’s positioning within P&G’s portfolio has proven strategically valuable.

The oral care category generates approximately 9% of P&G’s overall revenues, with Oral-B commanding significant market share within premium electric toothbrush segments. Beyond Oral-B, P&G markets additional oral care brands as part of its diversified portfolio. The company maintains an exceptional record of dividend growth—April 2019 marked P&G’s 63rd consecutive year of dividend increases, raising its quarterly dividend by 4% to $0.7459 per share.

Despite oral care representing a “slow-growth” business within P&G’s broader portfolio, the company’s scale, brand moat, and pricing power ensure consistent profitability. For investors seeking dividend stability with modest but reliable growth, Procter & Gamble’s oral care franchises provide core portfolio holdings that weather economic uncertainty while funding dividend distributions.

Church & Dwight (CHD): Strategic Brand Consolidator in Oral Care

Church & Dwight represents a scaled consumer products company that competes effectively against larger rivals including Procter & Gamble. Within oral care specifically, the company markets Arm & Hammer, AIM, Close-Up, and Pepsodent toothpastes, complemented by specialized brands including Orajel and Waterpik. This multi-brand approach creates cross-selling opportunities and mitigates dependence on single product lines.

The company’s acquisition strategy has generated substantial shareholder value. Church & Dwight recently acquired two hair removal brands—Flawless and Finishing Touch—for $475 million plus $425 million in potential earnout consideration. The combined businesses contribute $180 million in annual revenue and $55 million in EBITDA, illustrating management’s skill in identifying undervalued acquisitions and scaling their performance.

Over the past decade, Church & Dwight has delivered an annualized total return of 19.4%—substantially exceeding Procter & Gamble’s performance. This superior return reflects successful execution of a serial acquisition strategy, disciplined capital allocation, and effective integration management. For investors seeking exposure to the dental and oral care markets through a smaller-cap company demonstrating consistent operational excellence, Church & Dwight merits serious consideration.

Investment Considerations and Conclusion

The seven publicly traded dental companies profiled above offer investors distinct pathways to participate in the resilient dental healthcare sector. Regardless of economic environment, fundamental demand for dental products and services persists, driven by preventive care awareness, aging demographics, and population growth. The publicly traded dental companies span multiple market segments—from essential distribution infrastructure to innovative digital solutions—allowing portfolio construction across various risk-return profiles.

Investors evaluating these publicly traded dental companies should consider their individual risk tolerance, investment timeline, and portfolio construction objectives. Some companies offer steady cash flows and dividend income (Patterson, Procter & Gamble), while others provide growth potential through market share gains and operational leverage (Align Technology, 3D Systems). Diversification across multiple dental industry participants can provide balanced exposure to secular tailwinds benefiting the entire sector.

The dental care industry’s structural characteristics—recurring revenue generation, demographic support, and technological innovation opportunities—position publicly traded dental companies as worthy considerations for long-term portfolio development. As with all equity investments, fundamental analysis and valuation assessment remain essential before making investment decisions.