5 Biggest Dental Companies in the World

In this article, we will be taking a look at the 5 biggest dental companies in the world. To read our detailed analysis of these companies and the dental care industry, you can go directly to see the 12 Biggest Dental Companies in the World.

5. Align Technology, Inc. (NASDAQ:ALGN)

Number of Hedge Fund Holders: 38

Market Capitalization as of December 6: $14.68 billion

Align Technology, Inc. (NASDAQ:ALGN) is a medical device company based in Tempe, Arizona. The company designs, manufactures, and markets Invisalign clear aligners and iTero intraoral scanners and services for orthodontists and general practitioner dentists.

A Buy rating was reiterated on Align Technology, Inc. (NASDAQ:ALGN) shares on October 27 by analyst Jonathan Block at Stifel.

Align Technology, Inc. (NASDAQ:ALGN) accounts for about 80-85% of the global clear aligners market. Growing demand for aesthetics and clear braces in orthodontic treatment fueled the growth in the company’s global revenues in 2020. Total revenues then grew to $2.47 billion from $2.41 billion in 2019, representing a 3% increase.

Bares Capital Management was the largest stakeholder in Align Technology, Inc. (NASDAQ:ALGN) in the third quarter, holding 913,324 shares worth $189.2 million. In total, 38 funds were long the stock, with a total stake value of $756 million.

Polen Capital, an investment management firm, mentioned Align Technology, Inc. (NASDAQ:ALGN) in its second-quarter 2022 investor letter. Here’s what the firm said:

“Align Technology shares declined significantly during the second quarter when management reported a meaningful deceleration in growth. Management cited a host of challenges, including COVID19 impacts, especially in China with restrictions and lockdowns under their zero-COVID policy, a weaker economic environment, inflationary pressures, supply chain disruptions, and the war in
Ukraine, to name a few. Tough comparisons were also a reality— Invisalign case starts in 1Q22 were roughly flat, having lapped the 66% growth from the prior year. It’s not completely surprising that growth is slowing on such tough comparisons, but the company’s shares declined on the news.

By looking at Align’s three-year compound average growth rate (CAGR) to smooth out the ups and downs through COVID, key metrics like Invisalign case shipment, clear aligner revenue, and earnings per share have all grown ~20% during the trailing three years. We think this is quite respectable given the challenges during this period, but the lack of near-term momentum or visibility has not been well received in the current environment. According to our research, Align is the clear market leader, has global scale, a superior product, and still very modest market penetration. While growth may be challenged near term, we remain confident in the long-term growth opportunity.”

4. Straumann (SWX:STMN)

Number of Hedge Fund Holders: N/A

Market Capitalization as of December 6: $19.4 billion

Straumann (SWX:STMN) is a Switzerland-based company providing tooth replacement and orthodontic solutions worldwide. The company researches and develops dental implants, instruments, aligners, and more.

Straumann (SWX:STMN) has established itself as a global leader in the implant industry, which accounts for about 15% of the general dentistry market. The company leads this market, holding a market share of about 24% through its expansion and outperformance. Between 2015 and 2020, the company has a five-year average organic growth rate of 13%.

3. Zimmer Biomet (NYSE:ZBH)

Number of Hedge Fund Holders: 37

Market Capitalization as of December 6: $25.66 billion

Zimmer Biomet (NYSE:ZBH) is a healthcare company offering a range of products, including dental reconstructive implants, prosthetic and regenerative products, and robotic, surgical, and bone cement products. It is based in Warsaw, Indiana.

Zimmer Biomet (NYSE:ZBH) is one of the top American players in the dental implant market. It offers a range of 12 bone-level implants with tapered, straight, and tapered apex shapes. The company’s net sales in the third quarter stood at $1.67 billion.

There were 37 hedge funds long Zimmer Biomet (NYSE:ZBH) in the third quarter, with a total stake value of $1.2 billion.

Ariel Investments, an investment management firm, mentioned Zimmer Biomet (NYSE:ZBH) in its fourth-quarter 2021 investor letter. Here’s what the firm said:

“A reopening of the global economy with a reduction in the severity of the pandemic has led us to invest in companies that would perform well with an end to Covid restrictions such as canceled sports and entertainment events or companies that would benefit from pent-up demand for consumer products. Healthcare holdings such as Zimmer Biomet Holdings Inc. (ZBH) saw demand for their “elective” healthcare services decline sharply as hospitals lost capacity for non-essential surgeries or orthotics. We believed those companies should see a rebound in their business as cases decline. Unfortunately, two new Covid variants turned this theme from a tailwind to a headwind in the second half of the year. First, Delta then Omicron sent Covid cases higher and both companies saw their businesses slow again. Zimmer’s stock lost -13.04% in the fourth quarter. As we write, we believe Omicron cases could be nearing a peak which would allow our thesis to better play out this year.”

2. Colgate-Palmolive Company (NYSE:CL)

Number of Hedge Fund Holders: 57

Market Capitalization as of December 6: $64.41 billion

Colgate-Palmolive Company (NYSE:CL) is a consumer staples company based in New York. The company is best known for its oral and personal product brands for toothpaste, toothbrushes, mouthwash, and more, such as the Colgate brand.

A Buy rating was reiterated on Colgate-Palmolive Company (NYSE:CL) shares on December 6 by analyst Steve Powers at Deutsche Bank.

In the first six months of 2022, Colgate-Palmolive Company (NYSE:CL) demonstrated continued leadership in toothpaste manufacturing, with its global market share at 39.6% year-to-date. Sales for the company’s Oral, Personal, and Home Care segment grew by 2.9% year-over-year to $958 million in North America. This growth represented strong demand for the toothpaste category in Oral Care.

Colgate-Palmolive Company (NYSE:CL) was found among the 13F holdings of 57 hedge funds in the third quarter. Their total stake value was $4.1 billion.

Third Point, a New York-based investment advisor, mentioned Colgate-Palmolive Company (NYSE:CL) in its third-quarter 2022 investor letter. Here’s what the firm said:

“Third Point recently acquired a significant position in Colgate-Palmolive Company (NYSE:CL). The investment fits several important criteria in the current investment environment. First, the business is defensive and has significant pricing power in inflationary conditions. Second, there is meaningful hidden value in the company’s Hill’s Pet Nutrition business, which we believe would command a premium multiple if separated from Colgate’s consumer assets. Third, there is a favorable industry backdrop in consumer health, with new entrants via spin-offs and potential for consolidation. Finally, the current valuation is attractive both because earnings growth is poised to inflect higher, and because shareholders are paying very little for the optionality around Hill’s or Colgate’s ability to participate in further consolidation in the consumer health sector.

Colgate has a strong portfolio of brands and operates across four categories that should perform well across most economic conditions: oral care, home care, personal care, and pet nutrition. Although Colgate has delivered organic sales growth of 5-6% over the past few years, earnings growth has been disappointing, and the stock has become a perennial underperformer. Foreign exchange headwinds have pressured reported results. Business reinvestment, supply chain disruption, and inflationary pressures have weighed heavily on margins; those headwinds are now reversing. Stepped up investments in demand generation, product innovation, and digital capabilities are starting to pay off. Global supply chain bottlenecks are easing and product availability on the shelf is improving. And, most importantly, raw material, transportation, and wage pressures are stabilizing, and even reversing in some areas, at the same time additional pricing takes effect. Taken together, the stage is set for Colgate to deliver several years of outsized earnings growth, as sales continue to increase, foreign exchange movements are annualized, and margins finally recover…” (Click here to view the full text)

1. The Procter & Gamble Company (NYSE:PG)

Number of Hedge Fund Holders: 69

Market Capitalization as of December 6: $353.3 billion

The Procter & Gamble Company (NYSE:PG) is another consumer staples company on our list, based in Cincinnati, Ohio. The company’s Health Care segment offers toothbrushes, toothpastes, and other oral care products under the Crest and Oral-B brands.

Deutsche Bank’s Steve Powers holds a Buy rating on The Procter & Gamble Company (NYSE:PG) as of December 6.

The Procter & Gamble Company (NYSE:PG) is a leading company in the oral care industry. The company’s overall net sales stood at $80.19 billion in 2022. Its global net sales in the healthcare segment stood at $10.8 billion in 2022.

Our hedge fund data shows 69 funds long The Procter & Gamble Company (NYSE:PG) in the third quarter, with a total stake value of $4.1 billion.

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