Financial Comparison: Privia Health Group (NASDAQ:PRVA) vs. McKesson (NYSE:MCK)

Privia Health Group (NASDAQ:PRVA) and McKesson (NYSE:MCK) are both healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, profitability, institutional ownership, analyst recommendations, dividends and earnings.

Earnings & Valuation

This table compares Privia Health Group and McKesson”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Privia Health Group	$2.12 billion	1.25	$22.92 million	$0.21	99.10
McKesson	$403.43 billion	0.26	$4.76 billion	$37.37	23.95

McKesson has higher revenue and earnings than Privia Health Group. McKesson is trading at a lower price-to-earnings ratio than Privia Health Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Privia Health Group and McKesson, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Privia Health Group	0	3	11	0	2.79
McKesson	0	4	14	0	2.78

Privia Health Group currently has a consensus target price of $31.00, indicating a potential upside of 48.97%. McKesson has a consensus target price of $973.44, indicating a potential upside of 8.78%. Given Privia Health Group’s stronger consensus rating and higher probable upside, analysts plainly believe Privia Health Group is more favorable than McKesson.

Profitability

This table compares Privia Health Group and McKesson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Privia Health Group	1.19%	3.52%	2.00%
McKesson	1.12%	-253.21%	5.90%

Insider & Institutional Ownership

94.5% of Privia Health Group shares are owned by institutional investors. Comparatively, 85.1% of McKesson shares are owned by institutional investors. 5.7% of Privia Health Group shares are owned by insiders. Comparatively, 0.1% of McKesson shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Privia Health Group has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, McKesson has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500.

Summary

Privia Health Group beats McKesson on 9 of the 14 factors compared between the two stocks.

About Privia Health Group

Privia Health Group, Inc. operates as a national physician-enablement company in the United States. The company collaborates with medical groups, health plans, and health systems to optimize physician practices, enhance patient experiences, and reward doctors for delivering care in-person and virtual settings. It offers technology and population health tools to enhance independent providers' workflows; management services organization that enable providers to focus on their patients by reducing administrative work; single-TIN medical group that facilitates payer negotiation, clinical integration and alignment of financial incentives; accountable care organization, which engage patients, reduce inappropriate utilization, and enhance coordination and patient quality metrics to drive value-based care; and network for purchasers and payers that enable providers to connect with new patient populations and create custom contracts. The company was founded in 2007 and is headquartered in Arlington, Virginia.

About McKesson

McKesson Corporation provides healthcare services in the United States and internationally. It operates through four segments: U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International. The U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar and over-the-counter pharmaceutical drugs, and other healthcare-related products. This segment also offers practice management, technology, clinical support, and business solutions to community-based oncology and other specialty practices; and consulting, outsourcing, technological, and other services, as well as sells financial, operational, and clinical solutions to pharmacies. The RxTS segment serves biopharma and life sciences partners, and patients to address medication challenges for patients by working across healthcare; connects patients, pharmacies, providers, pharmacy benefit managers, health plans, and biopharma companies to deliver innovative solutions to help people get the medicine needed to live healthier lives; and provides prescription price transparency, benefit insight, dispensing support, third-party logistics, and wholesale distribution support services. The Medical-Surgical Solutions segment offers medical-surgical supply distribution, logistics, and other services to healthcare providers, including physician offices, surgery centers, nursing homes, hospital reference labs, and home health care agencies. The International segment provides distribution and services to wholesale, institutional, and retail customers in Europe and Canada. McKesson Corporation was founded in 1833 and is headquartered in Irving, Texas.