3 Reasons to Sell OMI and 1 Stock to Buy Instead

As an investor, it's crucial to stay informed about the market and make strategic decisions based on the available data. In this article, we'll explore three reasons to consider selling Owens & Minor (OMI) and suggest an alternative stock to buy instead. By examining the company's financial metrics, market performance, and recent developments, we'll provide a well-rounded analysis to help you make an informed decision.

1. Financial Performance and Profitability

Owens & Minor has been facing financial challenges, as indicated by its net margin of -0.46% and return on equity (ROE) of 14.60%. While the company has been working on improving its financial performance, these metrics suggest that OMI may not be as profitable as some of its competitors. For instance, Patterson Companies (PDCO) has a net margin of 2.37% and an ROE of 19.77%, indicating stronger profitability.



2. Market Volatility and Risk

OMI's stock price has been more volatile than that of its competitors, with a beta of 0.48 compared to PDCO's beta of 0.9. This higher volatility may be a concern for investors seeking a more stable investment. Although OMI's beta is still relatively low, indicating lower risk compared to the broader market, the higher volatility may be a factor to consider when evaluating the stock's long-term potential.

3. Regulatory and Legal Concerns

In February 2025, Bronstein, Gewirtz & Grossman, LLC announced an investigation against Owens & Minor, Inc. (OMI) due to potential claims on behalf of purchasers of the company's stock. This investigation could indicate regulatory or compliance issues that may impact OMI's stock performance in the long term. While the outcome of this investigation is not yet known, it is a factor that investors should be aware of when considering OMI as an investment.



An Alternative Stock to Consider: Patterson Companies (PDCO)

Given the reasons to sell OMI, investors may want to consider Patterson Companies (PDCO) as an alternative investment. PDCO has shown stronger financial performance, with higher net margins and ROE compared to OMI. Additionally, PDCO has a lower beta, indicating lower market volatility and risk. While PDCO may not be without its own challenges, its stronger financial performance and lower risk profile make it an attractive alternative to OMI.

In conclusion, investors should carefully consider the financial performance, market volatility, and regulatory concerns of Owens & Minor (OMI) before making a decision to sell the stock. By examining these factors and exploring alternative investments like Patterson Companies (PDCO), investors can make more informed decisions and potentially identify more attractive investment opportunities.