McKesson (NYSE: MCK) and Nu Skin Enterprises (NYSE:NUS) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.
Earnings & Valuation
This table compares McKesson and Nu Skin Enterprises’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|McKesson||$198.53 billion||0.15||$5.07 billion||$11.61||12.60|
|Nu Skin Enterprises||$2.28 billion||1.65||$129.43 million||$3.23||22.02|
McKesson pays an annual dividend of $1.36 per share and has a dividend yield of 0.9%. Nu Skin Enterprises pays an annual dividend of $1.46 per share and has a dividend yield of 2.1%. McKesson pays out 11.7% of its earnings in the form of a dividend. Nu Skin Enterprises pays out 45.2% 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 increased its dividend for 5 consecutive years and Nu Skin Enterprises has increased its dividend for 17 consecutive years. Nu Skin Enterprises is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
88.6% of McKesson shares are owned by institutional investors. Comparatively, 76.5% of Nu Skin Enterprises shares are owned by institutional investors. 1.2% of McKesson shares are owned by company insiders. Comparatively, 5.2% of Nu Skin Enterprises 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.
Volatility & Risk
McKesson has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, Nu Skin Enterprises has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500.
This table compares McKesson and Nu Skin Enterprises’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Nu Skin Enterprises||5.68%||25.23%||11.54%|
This is a breakdown of recent ratings and price targets for McKesson and Nu Skin Enterprises, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Nu Skin Enterprises||2||2||2||0||2.00|
McKesson presently has a consensus price target of $176.07, suggesting a potential upside of 20.39%. Nu Skin Enterprises has a consensus price target of $70.17, suggesting a potential downside of 1.35%. Given McKesson’s stronger consensus rating and higher probable upside, equities research analysts plainly believe McKesson is more favorable than Nu Skin Enterprises.
Nu Skin Enterprises beats McKesson on 9 of the 17 factors compared between the two stocks.
McKesson Corporation provides pharmaceuticals and medical supplies in the United States and internationally. The company operates in two segments, McKesson Distribution Solutions and McKesson Technology Solutions. The McKesson Distribution Solutions segment distributes branded and generic pharmaceutical drugs, and other healthcare-related products; and provides practice management, technology, clinical support, and business solutions to community-based oncology and other specialty practices. This segment also provides specialty pharmaceutical solutions for pharmaceutical manufacturers; and medical-surgical supply distribution, logistics, and other services to healthcare providers. In addition, this segment operates retail pharmacy chains in Europe and Canada, as well as supports independent pharmacy networks in North America and Europe; and supplies integrated pharmacy management systems, automated dispensing systems, and related services to retail, outpatient, central fill, specialty, and mail order pharmacies. This segment serves retail national accounts, including national and regional chains, food/drug combinations, mail order pharmacies, and mass merchandisers; and institutional healthcare providers, such as hospitals, health systems, integrated delivery networks, and long-term care providers, as well as offers its services to pharmaceutical manufacturers. The McKesson Technology Solutions segment provides clinical, financial, and supply chain management solutions to healthcare organizations. McKesson Corporation was founded in 1833 and is headquartered in San Francisco, California.
About Nu Skin Enterprises
Nu Skin Enterprises, Inc. develops and distributes anti-aging personal care products and nutritional supplements under the Nu Skin and Pharmanex category brands worldwide. It provides skin care systems and targeted treatment products, including ageLOC Me customized skin care systems, ageLOC Spa systems, and ageLOC LumiSpa skin treatment and cleansing devices; and Epoch products, as well as a range of other cosmetic, personal care, and hair care products. The company also offers ageLOC Youth nutritional supplements, ageLOC TR90 weight management and body shaping systems, and LifePak nutritional supplements, as well as other anti-aging nutritional solutions and weight management products. In addition, it is involved in the research and product development of skin care products and nutritional supplements. Further, the company operates walk-in centers and pick-up locations; and retail stores and service centers in Mainland China. The company sells its products directly, as well as through distributors and Website. Nu Skin Enterprises, Inc. was founded in 1984 and is headquartered in Provo, Utah.
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