McKesson (NYSE:MCK) versus Getinge (OTCMKTS:GNGBY) Financial Survey

Getinge (OTCMKTS:GNGBY) and McKesson (NYSE:MCK) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Risk and Volatility

Getinge has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, McKesson has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500.

Insider and Institutional Ownership

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

Dividends

Getinge pays an annual dividend of $0.29 per share and has a dividend yield of 1.2%. McKesson pays an annual dividend of $3.76 per share and has a dividend yield of 0.4%. Getinge pays out 27.6% of its earnings in the form of a dividend. McKesson pays out 10.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. McKesson has raised its dividend for 17 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Getinge	7.81%	11.12%	5.88%
McKesson	1.12%	-253.21%	5.90%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Getinge	0	4	0	0	2.00
McKesson	0	4	14	0	2.78

McKesson has a consensus target price of $973.44, indicating a potential upside of 12.33%. Given McKesson’s stronger consensus rating and higher probable upside, analysts plainly believe McKesson is more favorable than Getinge.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Getinge	$3.57 billion	1.87	$230.87 million	$1.05	23.38
McKesson	$403.43 billion	0.25	$4.76 billion	$37.37	23.19

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

Summary

McKesson beats Getinge on 11 of the 17 factors compared between the two stocks.

About Getinge

Getinge AB (publ) provides products and solutions for operating rooms, intensive-care units, and sterilization departments. The company operates through Acute Care Therapies, Life Science, and Surgical Workflows segments. It offers extracorporeal membrane oxygenation, mechanical ventilation, mechanical circulatory support, advanced patient monitoring, ICU infrastructure equipment, patient flow management, and drainage solutions. The company also provides surgical perfusion, endoscopic vessel harvesting, intra-aortic balloon counterpulsation, and drainage solutions; and operating room infrastructure equipment, anesthesia, advanced patient monitoring, operating room management, and operating room integration solutions. In addition, it offers pre-cleaning, cleaning and disinfection, sterilization, consumables, endoscope reprocessing, and sterile supply management solutions; connected medical devices; bioreactor systems, DPTE systems, Getinge isolators, terminal sterilization products, and sterilizers; and vivarium, biohazardous materials handling solutions, labware cleaning and sterilization, upstream bioprocessing, and bioreactor preparation solutions. It offers its products through a network of sales companies, as well as through agents and distributors in the Americas, Europe, the Middle East, Africa, and the Asia and Pacific. Getinge AB (publ) was founded in 1904 and is headquartered in Gothenburg, Sweden.

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.