McKesson vs Amazon.com Which Is a Smarter Choice?

McKesson Corporation and Amazon.com are two prominent companies in the healthcare and e-commerce industries, respectively. McKesson is a leading provider of pharmaceuticals and healthcare solutions, while Amazon has revolutionized online shopping. Both companies compete in different sectors but are now facing off as Amazon expands into healthcare. Investors are closely monitoring their stocks to see how they will perform against each other. This comparison will analyze the financial health and growth potential of McKesson vs Amazon.com stocks.

McKesson or Amazon.com?

When comparing McKesson and Amazon.com, 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 McKesson and Amazon.com.

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. McKesson has a dividend yield of 0.46%, while Amazon.com has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. McKesson reports a 5-year dividend growth of 9.71% year and a payout ratio of 12.89%. On the other hand, Amazon.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 McKesson P/E ratio at 29.24 and Amazon.com's P/E ratio at 47.90. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. McKesson P/B ratio is -24.58 while Amazon.com's P/B ratio is 9.22.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, McKesson has seen a 5-year revenue growth of 0.96%, while Amazon.com's is 1.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with McKesson's ROE at -115.33% and Amazon.com's ROE at 21.82%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $575.36 for McKesson and $225.86 for Amazon.com. Over the past year, McKesson's prices ranged from $431.35 to $637.51, with a yearly change of 47.79%. Amazon.com's prices fluctuated between $144.05 and $231.20, with a yearly change of 60.50%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.