McKesson vs AmerisourceBergen Which Is More Reliable?

McKesson Corporation and AmerisourceBergen Corporation are two major players in the pharmaceutical distribution industry. Both companies are publicly traded and have experienced fluctuations in their stock prices in recent years. McKesson's stock has been affected by challenges in the healthcare industry, while AmerisourceBergen's stock has been impacted by regulatory concerns and changes in the market. Investors are closely monitoring these two companies to gauge their performance and potential growth opportunities in the future.

McKesson or AmerisourceBergen?

When comparing McKesson and AmerisourceBergen, 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 AmerisourceBergen.

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 AmerisourceBergen has a dividend yield of 0.88%. 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, AmerisourceBergen reports a 5-year dividend growth of 4.99% year and a payout ratio of 27.58%.

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 29.64 and AmerisourceBergen's P/E ratio at 30.82. 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 -24.91 while AmerisourceBergen's P/B ratio is 72.02.

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 AmerisourceBergen's is 0.70%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with McKesson's ROE at -115.33% and AmerisourceBergen's ROE at 162.71%.

Retail Investors:

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