AmerisourceBergen vs McKesson Which Is More Favorable?

AmerisourceBergen and McKesson are two of the biggest names in the pharmaceutical distribution industry, with both companies playing a crucial role in the healthcare sector. Investors often look to these stocks as reliable options for their portfolios, as they have shown consistent growth and stability over the years. However, the two companies have their own unique strengths and weaknesses, making it important for investors to carefully analyze their financials and market trends before making investment decisions. Let's delve deeper into the stock performance and key factors influencing AmerisourceBergen and McKesson.

AmerisourceBergen or McKesson?

When comparing AmerisourceBergen and McKesson, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between AmerisourceBergen and McKesson.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. AmerisourceBergen has a dividend yield of 0.88%, while McKesson has a dividend yield of 0.46%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AmerisourceBergen reports a 5-year dividend growth of 4.99% year and a payout ratio of 27.58%. On the other hand, McKesson reports a 5-year dividend growth of 9.71% year and a payout ratio of 12.89%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with AmerisourceBergen P/E ratio at 30.82 and McKesson's P/E ratio at 29.64. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AmerisourceBergen P/B ratio is 72.02 while McKesson's P/B ratio is -24.91.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AmerisourceBergen has seen a 5-year revenue growth of 0.70%, while McKesson's is 0.96%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AmerisourceBergen's ROE at 162.71% and McKesson's ROE at -115.33%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $236.96 for AmerisourceBergen and $582.17 for McKesson. Over the past year, AmerisourceBergen's prices ranged from $150.19 to $241.05, with a yearly change of 60.50%. McKesson's prices fluctuated between $431.35 and $637.51, with a yearly change of 47.79%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.