Henry Schein vs McKesson Which Outperforms?

Henry Schein Inc. and McKesson Corporation are two prominent players in the healthcare distribution industry, providing a wide range of products and services to healthcare providers around the world. Both companies have demonstrated strong financial performance and consistent growth over the years, making them attractive investment options for stock market investors. However, there are key differences between the two companies in terms of market positioning, business strategy, and growth prospects. In this comparison, we will delve into the fundamentals of Henry Schein and McKesson stocks to assess which company presents a more promising investment opportunity.

Henry Schein or McKesson?

When comparing Henry Schein 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 Henry Schein 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. Henry Schein has a dividend yield of -%, while McKesson has a dividend yield of 0.46%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Henry Schein reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 Henry Schein P/E ratio at 30.77 and McKesson's P/E ratio at 29.24. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Henry Schein P/B ratio is 2.76 while McKesson's P/B ratio is -24.58.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Henry Schein has seen a 5-year revenue growth of 0.09%, while McKesson's is 0.96%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Henry Schein's ROE at 8.80% and McKesson's ROE at -115.33%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $75.71 for Henry Schein and $575.36 for McKesson. Over the past year, Henry Schein's prices ranged from $63.67 to $82.63, with a yearly change of 29.78%. 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.