McKesson vs Epic Which Offers More Value?

McKesson Corporation and Epic Systems Corporation are two leading companies in the healthcare industry, each contributing unique products and services to the market. McKesson, an established player in the pharmaceutical distribution and healthcare technology sectors, boasts a strong track record of financial performance and market presence. Conversely, Epic, a newer but rapidly growing player in the electronic health records and healthcare software space, has captured the attention of investors with its innovative solutions. This article will explore the stocks of these two companies, comparing their performance, growth potential, and future outlook in the competitive healthcare sector.

McKesson or Epic?

When comparing McKesson and Epic, 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 Epic.

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 Epic 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, Epic 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 29.64 and Epic's P/E ratio at 0.00. 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 Epic's P/B ratio is 0.00.

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 Epic's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with McKesson's ROE at -115.33% and Epic's ROE at 20.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $582.17 for McKesson and $0.00 for Epic. Over the past year, McKesson's prices ranged from $431.35 to $637.51, with a yearly change of 47.79%. Epic's prices fluctuated between $0.00 and $0.00, with a yearly change of 9900.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.