Head-To-Head Contrast: McKesson (NYSE:MCK) and Progyny (NASDAQ:PGNY)

Progyny (NASDAQ:PGNY) and McKesson (NYSE:MCK) are both healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Institutional and Insider Ownership

94.9% of Progyny shares are owned by institutional investors. Comparatively, 85.1% of McKesson shares are owned by institutional investors. 9.9% of Progyny shares are owned by company insiders. Comparatively, 0.1% of McKesson shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Progyny	$1.29 billion	1.54	$58.52 million	$0.92	28.07
McKesson	$403.43 billion	0.26	$4.76 billion	$37.37	24.20

McKesson has higher revenue and earnings than Progyny. McKesson is trading at a lower price-to-earnings ratio than Progyny, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Progyny and McKesson, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Progyny	0	3	9	1	2.85
McKesson	0	4	14	0	2.78

Progyny presently has a consensus price target of $33.91, suggesting a potential upside of 31.33%. McKesson has a consensus price target of $973.44, suggesting a potential upside of 7.64%. Given Progyny’s stronger consensus rating and higher probable upside, equities analysts clearly believe Progyny is more favorable than McKesson.

Risk and Volatility

Progyny has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, McKesson has a beta of 0.3, meaning that its stock price is 70% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Progyny	6.00%	15.98%	10.65%
McKesson	1.12%	-253.21%	5.90%

Summary

Progyny beats McKesson on 11 of the 15 factors compared between the two stocks.

About Progyny

Progyny, Inc., a benefits management company, specializes in fertility and family building benefits solutions in the United States. Its fertility benefits solution includes differentiated benefits plan design, personalized concierge-style member support services, and selective network of fertility specialists. The company also offers Progyny Rx, an integrated pharmacy benefits solution that provides its members with access to the medications needed during their treatment. In addition, it provides assistance service programs where various services can be offered through a reimbursement program, including adoption, surrogacy, doula, and travel reimbursement when travel is required to receive medical services. The company was formerly known as Auxogyn, Inc. and changed its name to Progyny, Inc. in 2015. Progyny, Inc. was incorporated in 2008 and is headquartered in New York, New York.

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.