Critical Contrast: McKesson Corporation (MCK) vs. MWI Veterinary Supply (MWIV)
McKesson Corporation (NYSE: MCK) and MWI Veterinary Supply (NASDAQ:MWIV) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.
Institutional and Insider Ownership
85.3% of McKesson Corporation shares are owned by institutional investors. 1.2% of McKesson Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares McKesson Corporation and MWI Veterinary Supply’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MWI Veterinary Supply||2.51%||15.74%||7.86%|
Valuation & Earnings
This table compares McKesson Corporation and MWI Veterinary Supply’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|McKesson Corporation||$199.85 billion||0.16||$3.94 billion||$22.42||6.78|
|MWI Veterinary Supply||N/A||N/A||N/A||N/A||N/A|
McKesson Corporation has higher revenue and earnings than MWI Veterinary Supply.
This is a summary of current ratings for McKesson Corporation and MWI Veterinary Supply, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MWI Veterinary Supply||0||0||0||0||N/A|
McKesson Corporation presently has a consensus price target of $170.36, indicating a potential upside of 12.01%. Given McKesson Corporation’s higher probable upside, equities research analysts plainly believe McKesson Corporation is more favorable than MWI Veterinary Supply.
McKesson Corporation pays an annual dividend of $1.36 per share and has a dividend yield of 0.9%. MWI Veterinary Supply does not pay a dividend. McKesson Corporation pays out 6.1% of its earnings in the form of a dividend. McKesson Corporation has raised its dividend for 4 consecutive years.
McKesson Corporation beats MWI Veterinary Supply on 8 of the 11 factors compared between the two stocks.
McKesson Corporation Company Profile
McKesson Corporation (McKesson) is engaged in delivering pharmaceuticals, medical supplies and healthcare information technology. The Company operates through two segments: McKesson Distribution Solutions and Technology Solutions. The McKesson Distribution Solutions segment distributes drugs and equipment, and health and beauty care products across North America and internationally. The Distribution Solutions segment provides pharmaceutical solutions for biotech and pharmaceutical manufacturers, and practice management, technology, clinical support and business solutions to oncology and other specialty practices operating in the community setting. The Technology Solutions segment delivers clinical, patient care, financial, supply chain and strategic management software solutions, as well as connectivity, outsourcing and other services. Its McKesson Health Solutions portfolio includes ClarityQx, which is a payment technology.
MWI Veterinary Supply Company Profile
MWI Veterinary Supply, Inc. (MWI) is a distributor of animal health products to veterinarians across the United States of America and United Kingdom. MWI sells both companion animal and production animal products including pharmaceuticals, vaccines, parasiticides, diagnostics, micro feed ingredients, supplies, pet food, capital equipment and nutritional products. MWI also offers customers a variety of value-added services, including its e-commerce platform, technology management systems, pharmacy fulfillment, inventory management system, equipment procurement consultation, special order fulfillment, educational seminars and pet cremation. As of September 30, 2014, the Company operates 23 distribution centers located across the United States and one distribution center in the United Kingdom.
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