Critical Contrast: Walgreens Boots Alliance (WBA) versus MWI Veterinary Supply (MWIV)
Walgreens Boots Alliance (NASDAQ: WBA) and MWI Veterinary Supply (NASDAQ:MWIV) are both mid-cap non-cyclical consumer goods & services companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.
Institutional & Insider Ownership
61.4% of Walgreens Boots Alliance shares are owned by institutional investors. 14.8% of Walgreens Boots Alliance shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Walgreens Boots Alliance pays an annual dividend of $1.60 per share and has a dividend yield of 2.2%. MWI Veterinary Supply does not pay a dividend. Walgreens Boots Alliance pays out 42.3% of its earnings in the form of a dividend.
This is a breakdown of current recommendations for Walgreens Boots Alliance and MWI Veterinary Supply, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Walgreens Boots Alliance||0||8||12||0||2.60|
|MWI Veterinary Supply||0||0||0||0||N/A|
Walgreens Boots Alliance presently has a consensus price target of $85.94, indicating a potential upside of 19.83%.
This table compares Walgreens Boots Alliance and MWI Veterinary Supply’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Walgreens Boots Alliance||3.45%||18.36%||7.73%|
|MWI Veterinary Supply||2.51%||15.74%||7.86%|
Earnings and Valuation
This table compares Walgreens Boots Alliance and MWI Veterinary Supply’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Walgreens Boots Alliance||$118.21 billion||0.60||$4.08 billion||$3.78||18.97|
|MWI Veterinary Supply||N/A||N/A||N/A||$5.77||N/A|
Walgreens Boots Alliance has higher revenue and earnings than MWI Veterinary Supply. MWI Veterinary Supply is trading at a lower price-to-earnings ratio than Walgreens Boots Alliance, indicating that it is currently the more affordable of the two stocks.
Walgreens Boots Alliance beats MWI Veterinary Supply on 7 of the 10 factors compared between the two stocks.
About Walgreens Boots Alliance
Walgreens Boots Alliance, Inc. (Walgreens Boots Alliance) is a holding company. The Company is a global pharmacy-led, health and wellbeing enterprise. Walgreens Boots Alliance operates through three divisions, including Retail Pharmacy USA, Retail Pharmacy International and Pharmaceutical Wholesale. The Company’s products are marketed under a number of brands, which include No7, the Botanics range, Almus (generic medicines), Boots Pharmaceuticals and Soap & Glory (bathing and beauty brand). In addition, the Company has investments in Guangzhou Pharmaceuticals Corporation and Nanjing Pharmaceutical Company Limited. The Company operates in around 25 countries, which include the wholesale and distribution network with over 340 distribution centers and more than 180,000 pharmacies, health centers and hospitals in 19 countries.
About MWI Veterinary Supply
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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