Henry Schein, Inc. (HSIC) vs McKesson Corporation (MCK)

Henry Schein, Inc. and McKesson Corporation are both Medical Distribution companies. McKesson Corporation is the larger, with a market value of $101.8B against $9.5B — 10.7× the size. McKesson Corporation trades at the lower P/E: 23.1× against 25.0×. McKesson Corporation grew revenue faster over the last twelve months: 8.84% against 6.49%. Henry Schein, Inc. has the higher net margin (2.96% vs 1.12%) and the lower return on invested capital (6.97% vs 70.5%). Across the 21 metrics below, McKesson Corporation leads on 14 and Henry Schein, Inc. on 7.

Valuation

Metric HSIC MCK Medical Distribution median
P/E 24.96 23.09 —
P/S 0.72 0.25 0.23
P/B 2.57 n/m —
Price to free cash flow 17.22 16.74 —
EV/EBITDA 12.01 15.49 15.49
EV/Sales 0.89 0.27 0.65
Earnings yield 4.01% 4.33% (22.94%)
Free cash flow yield 5.81% 5.97% (11.43%)

Profitability

Metric HSIC MCK Medical Distribution median
Gross margin 31.32% 3.64% 8.01%
Operating margin 5.00% 1.58% 0.46%
Net margin 2.96% 1.12% (6.08%)
Free cash flow margin 4.18% 1.50% 0.00%
Return on equity 10.20% (168.45%) 0.00%
Return on assets 3.62% 5.41% 0.00%
Return on invested capital 6.97% 70.49% 0.00%

Growth

Metric HSIC MCK Medical Distribution median
Revenue growth (TTM) 6.49% 8.84% 11.54%
EPS growth (last fiscal year) 7.21% 49.22% —
Revenue growth, 5-year CAGR 5.43% 11.11% 8.18%
Net income growth, 5-year CAGR (0.30%) 0.00% 0.00%

Health

Metric HSIC MCK Medical Distribution median
Debt to equity 0.64 (3.83) (0.34)
Current ratio 1.32 0.89 1.05
Net debt to EBITDA 2.27 1.10 (0.01)

Dividend

Metric HSIC MCK Medical Distribution median
Dividend yield — 0.47% —
Payout ratio 0.00 0.08 0.00

Size

Metric HSIC MCK Medical Distribution median
Market cap 9.53b 101.76b 172.03m

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