MWI Veterinary Supply (NASDAQ: MWIV) and McKesson Corporation (NYSE:MCK) are both non-cyclical consumer goods & services companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.
Earnings & Valuation
This table compares MWI Veterinary Supply and McKesson Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|MWI Veterinary Supply||N/A||N/A||N/A||N/A||N/A|
|McKesson Corporation||$199.85 billion||0.16||$3.94 billion||$22.42||6.69|
McKesson Corporation has higher revenue and earnings 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. MWI Veterinary Supply has increased its dividend for 4 consecutive years.
This is a breakdown of current ratings and target prices for MWI Veterinary Supply and McKesson Corporation, 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 has a consensus target price of $169.14, indicating a potential upside of 12.85%. Given McKesson Corporation’s higher possible upside, analysts clearly believe McKesson Corporation is more favorable than MWI Veterinary Supply.
Institutional and Insider Ownership
85.3% of McKesson Corporation shares are held by institutional investors. 1.2% of McKesson Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares MWI Veterinary Supply and McKesson Corporation’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%|
McKesson Corporation beats MWI Veterinary Supply on 7 of the 11 factors compared between the two stocks.
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.
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.
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