Analyzing GeneDx (NASDAQ:WGS) and McKesson Europe (OTCMKTS:CAKFY)

McKesson Europe (OTCMKTS:CAKFY) and GeneDx (NASDAQ:WGS) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, dividends, valuation, profitability, institutional ownership, risk and analyst recommendations.

Institutional & Insider Ownership

0.0% of McKesson Europe shares are owned by institutional investors. Comparatively, 61.7% of GeneDx shares are owned by institutional investors. 25.2% of GeneDx shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for McKesson Europe and GeneDx, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
McKesson Europe	0	0	0	0	0.00
GeneDx	1	1	7	0	2.67

GeneDx has a consensus target price of $89.57, indicating a potential downside of 1.01%. Given GeneDx’s stronger consensus rating and higher probable upside, analysts plainly believe GeneDx is more favorable than McKesson Europe.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
McKesson Europe	N/A	N/A	N/A
GeneDx	-23.41%	4.12%	2.26%

Earnings and Valuation

This table compares McKesson Europe and GeneDx”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
McKesson Europe	N/A	N/A	N/A	$0.09	47.67
GeneDx	$427.54 million	6.31	-$21.02 million	($3.64)	-24.86

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

Summary

GeneDx beats McKesson Europe on 8 of the 11 factors compared between the two stocks.

About McKesson Europe

McKesson Europe AG provides logistics and other services to the pharmaceutical and healthcare sectors worldwide. The company operates through two divisions, Pharmaceutical Distribution and Retail Pharmacy. The Pharmaceutical Distribution division engages in the wholesale of pharmaceutical and other health care products. This division serves its customers through 90 wholesale branches that supply pharmaceutical products to approximately 40,000 pharmacies and hospitals, as well as operates 70 distribution centers in Europe. The Retail Pharmacy division operates approximately 2,000 owned pharmacies and approximately 8,000 members in its brand partnership program. This division also provides outpatient drug, e-commerce, and home care services primarily in Belgium, Ireland, Italy, and the United Kingdom under the Lloyds Pharmacy brand. In addition, this division provides traditional prescription drugs, over-the-counter products, and medical services. It also provides other services for pharmacists, such as the organization and management of pharmacy cooperation programs in the Great Britain, France, Portugal, and Belgium. The company was formerly known as Celesio AG and changed its name to McKesson Europe AG in September 2017. The company was founded in 1835 and is headquartered in Stuttgart, Germany. McKesson Europe AG is a subsidiary of McKesson Corporation.

About GeneDx

GeneDx Holdings Corp., through its subsidiaries, provides genomics-related diagnostic and information services. The company offers Centrellis, an AI-driven health intelligence platform that integrates digital tools and artificial intelligence allowing scientists to ingest and synthesize clinical and genomic data to deliver comprehensive health insights. It provides genetic diagnostic tests, screening solutions, and information with a focus on pediatrics, rare diseases for children and adults, and hereditary cancer screening. GeneDx Holdings Corp. was founded in 2017 and is headquartered in Stamford, Connecticut.