Comparing McKesson Europe (CAKFY) & The Competition

Dividends

McKesson Europe pays an annual dividend of $0.04 per share and has a dividend yield of 0.9%. McKesson Europe pays out 43.2% of its earnings in the form of a dividend. As a group, “Healthcare Providers & Services” companies pay a dividend yield of 1.5% and pay out 25.4% of their earnings in the form of a dividend. McKesson Europe lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings and Valuation

This table compares McKesson Europe and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
McKesson Europe	N/A	N/A	47.67
McKesson Europe Competitors	$20.41 billion	$277.67 million	-227.44

McKesson Europe’s peers have higher revenue and earnings than McKesson Europe. McKesson Europe is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares McKesson Europe and its peers’ 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
McKesson Europe Competitors	-5.53%	-138.28%	-0.40%

Institutional and Insider Ownership

0.0% of McKesson Europe shares are held by institutional investors. Comparatively, 58.0% of shares of all “Healthcare Providers & Services” companies are held by institutional investors. 15.2% of shares of all “Healthcare Providers & Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

McKesson Europe peers beat McKesson Europe on 5 of the 9 factors compared.

McKesson Europe Company Profile

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.