The healthcare industry offers investors many good options to invest in like CSL Limited (ASX: CSL) and Cochlear Limited (ASX: COH).
However, I wouldn't describe CSL and Cochlear as cheap at the moment, I'd rather invest in these healthcare businesses:
Monash IVF Group Ltd (ASX: MVF)
Monash IVF is one of the largest IVF businesses in Australia, it owns several brands alongside its main Monash IVF brand including MyIVF Clinic and Repromed.
Various factors are causing families to have their children later in life and this makes it more likely that medical intervention will be needed. Monash could have a long-term growth runway if demand for IVF keeps growing.
Monash IVF is currently trading at 11x FY18's estimated earnings with a grossed-up dividend yield of 7.76%.
Nanosonics Ltd (ASX: NAN)
Nanosonics is the business behind advanced disinfectant devices for ultrasound probes.
The health requirements of countries around the world are steadily growing. Nanosonics can fill that need and even lobby for higher requirements in the regions that they think would benefit the most.
Nanosonics' share price has declined to $2.45 over the last few weeks, so I think it's trading at more attractive value at around 40x FY19's estimated earnings.
NIB is one of the largest private health insurers in Australia. It has been impressively growing its number of policyholders over the last few years and I can't see the growth stopping in the short-term.
Health insurance is a good way to get diversified exposure to all the different health issues that a policyholder may need it for.
NIB is currently trading at 22x FY17's estimated earnings with a grossed-up dividend yield of 4.3%.
Foolish takeaway
All three of these businesses have seen their share prices hit in recent times. I think NIB is the safest of the three and would be a good addition to most portfolios.
Monash IVF would be good for income investors, whilst Nanosonics could be a good growth stock over the next few years.
