Critical Analysis: McKesson Corporation (MCK) & 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 contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.
McKesson Corporation pays an annual dividend of $1.12 per share and has a dividend yield of 0.8%. MWI Veterinary Supply does not pay a dividend. McKesson Corporation pays out 5.0% of its earnings in the form of a dividend. MWI Veterinary Supply has raised its dividend for 4 consecutive years.
Earnings & Valuation
This table compares McKesson Corporation and MWI Veterinary Supply’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|McKesson Corporation||$199.85 billion||0.15||$3.94 billion||$22.42||6.51|
|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 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%|
This is a breakdown of current ratings and price targets 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 $169.50, suggesting a potential upside of 16.10%. Given McKesson Corporation’s higher possible upside, equities research analysts plainly believe McKesson Corporation is more favorable than MWI Veterinary Supply.
Institutional & Insider Ownership
86.6% of McKesson Corporation shares are owned by institutional investors. 1.2% of McKesson Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
McKesson Corporation beats MWI Veterinary Supply on 7 of the 11 factors compared between the two stocks.
About McKesson Corporation
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.
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.
Receive News & Ratings for McKesson Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for McKesson Corporation and related companies with MarketBeat.com's FREE daily email newsletter.