McKesson (NYSE:MCK – Get Free Report) and Privia Health Group (NASDAQ:PRVA – Get Free Report) are both healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, risk, institutional ownership, dividends, profitability and earnings.
Insider & Institutional Ownership
85.1% of McKesson shares are held by institutional investors. Comparatively, 94.5% of Privia Health Group shares are held by institutional investors. 0.1% of McKesson shares are held by insiders. Comparatively, 5.7% of Privia Health Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and price targets for McKesson and Privia Health Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| McKesson | 0 | 4 | 14 | 0 | 2.78 |
| Privia Health Group | 0 | 3 | 11 | 0 | 2.79 |
Valuation and Earnings
This table compares McKesson and Privia Health Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| McKesson | $410.98 billion | 0.26 | $4.76 billion | $37.37 | 24.30 |
| Privia Health Group | $2.12 billion | 1.24 | $22.92 million | $0.21 | 98.29 |
McKesson has higher revenue and earnings than Privia Health Group. McKesson is trading at a lower price-to-earnings ratio than Privia Health Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares McKesson and Privia Health Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| McKesson | 1.12% | -253.21% | 5.90% |
| Privia Health Group | 1.19% | 3.52% | 2.00% |
Risk & Volatility
McKesson has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500. Comparatively, Privia Health Group has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.
Summary
Privia Health Group beats McKesson on 9 of the 14 factors compared between the two stocks.
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.
About Privia Health Group
Privia Health Group, Inc. operates as a national physician-enablement company in the United States. The company collaborates with medical groups, health plans, and health systems to optimize physician practices, enhance patient experiences, and reward doctors for delivering care in-person and virtual settings. It offers technology and population health tools to enhance independent providers' workflows; management services organization that enable providers to focus on their patients by reducing administrative work; single-TIN medical group that facilitates payer negotiation, clinical integration and alignment of financial incentives; accountable care organization, which engage patients, reduce inappropriate utilization, and enhance coordination and patient quality metrics to drive value-based care; and network for purchasers and payers that enable providers to connect with new patient populations and create custom contracts. The company was founded in 2007 and is headquartered in Arlington, Virginia.
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