Critical Review: McKesson (NYSE:MCK) & Medios (OTCMKTS:MEDOF)

Medios (OTCMKTS:MEDOF) and McKesson (NYSE:MCK) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Insider & Institutional Ownership

85.1% of McKesson shares are held by institutional investors. 0.1% of McKesson shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Medios and McKesson”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medios	N/A	N/A	N/A	N/A	N/A
McKesson	$313.75 billion	0.21	$3.00 billion	$22.38	22.62

McKesson has higher revenue and earnings than Medios.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Medios and McKesson, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medios	0	0	0	0	N/A
McKesson	0	4	12	0	2.75

McKesson has a consensus target price of $610.86, indicating a potential upside of 20.66%. Given McKesson’s higher probable upside, analysts clearly believe McKesson is more favorable than Medios.

Profitability

This table compares Medios and McKesson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Medios	N/A	N/A	N/A
McKesson	0.94%	-242.57%	5.47%

Summary

McKesson beats Medios on 7 of the 8 factors compared between the two stocks.

About Medios

Medios AG, together with its subsidiaries, supplies specialty pharmaceutical drugs primarily in Germany. It operates through Pharmaceutical Supply and Patient-Specific Therapies segments. The Pharmaceutical Supply segment offers products on oncology, neurology, autoimmunology, ophthalmology, infectiology, and hemophilia diseases. The Patient-Specific Therapies segment manufactures medications for patients on behalf of pharmacies. This segment includes cytostatic infusion preparations, antibody therapies, virostatic and antibiotic medications, parenteral nutrition solutions, and investigational medicinal products. Medios AG was founded in 2016 and is headquartered in Berlin, Germany.

About McKesson

McKesson Corporation provides healthcare services in the United States and internationally. It operates through four segments: U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International. The U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar and over-the-counter pharmaceutical drugs, and other healthcare-related products. This segment also offers practice management, technology, clinical support, and business solutions to community-based oncology and other specialty practices; and consulting, outsourcing, technological, and other services, as well as sells financial, operational, and clinical solutions to pharmacies. The RxTS segment serves biopharma and life sciences partners, and patients to address medication challenges for patients by working across healthcare; connects patients, pharmacies, providers, pharmacy benefit managers, health plans, and biopharma companies to deliver innovative solutions to help people get the medicine needed to live healthier lives; and provides prescription price transparency, benefit insight, dispensing support, third-party logistics, and wholesale distribution support services. The Medical-Surgical Solutions segment offers medical-surgical supply distribution, logistics, and other services to healthcare providers, including physician offices, surgery centers, nursing homes, hospital reference labs, and home health care agencies. The International segment provides distribution and services to wholesale, institutional, and retail customers in Europe and Canada. McKesson Corporation was founded in 1833 and is headquartered in Irving, Texas.