Head to Head Comparison: McKesson (NYSE:MCK) and Straumann (OTCMKTS:SAUHY)

McKesson (NYSE:MCK) and Straumann (OTCMKTS:SAUHY) are both large-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for McKesson and Straumann, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
McKesson	0	3	10	1	2.86
Straumann	0	0	0	3	4.00

McKesson currently has a consensus target price of $719.2727, indicating a potential upside of 6.90%. Given McKesson’s higher possible upside, equities analysts plainly believe McKesson is more favorable than Straumann.

Dividends

McKesson pays an annual dividend of $2.84 per share and has a dividend yield of 0.4%. Straumann pays an annual dividend of $0.03 per share and has a dividend yield of 0.3%. McKesson pays out 11.3% of its earnings in the form of a dividend. McKesson has increased its dividend for 17 consecutive years. McKesson is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

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

Risk and Volatility

McKesson has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500. Comparatively, Straumann has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
McKesson	0.84%	-196.66%	5.66%
Straumann	N/A	N/A	N/A

Earnings & Valuation

This table compares McKesson and Straumann”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
McKesson	$359.05 billion	0.23	$3.30 billion	$25.08	26.83
Straumann	$2.84 billion	6.50	$441.09 million	N/A	N/A

McKesson has higher revenue and earnings than Straumann.

Summary

McKesson beats Straumann on 10 of the 16 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 Straumann

Straumann Holding AG provides tooth replacement and orthodontic solutions worldwide. It researches, develops, manufactures, and supplies dental implants, instruments, CADCAM prosthetics, orthodontic aligners, biomaterials, and digital solutions for use in tooth correction, replacement, and restoration, as well as to prevent tooth loss. The company offers dental implants and components made from titanium, titanium alloy, and ceramics; prosthetic elements made od ceramics, metal or polymer; and clear aligners. In addition, it offers resins for 3D printing and thermoplastics for clear aligner production; and biomaterials for tissue generation. Further, it provides digital equipment comprising scanners, milling machines and 3D printers. Further, it offers training and education services. The company provides its products to general dentists, specialists, and dental technicians and laboratories, as well as customers, such as distributors, hospitals, universities, and dental service organizations in approximately 100 countries through a network of distribution subsidiaries and partners. Straumann Holding AG was founded in 1954 and is headquartered in Basel, Switzerland.