CONMED (NYSE:CNMD) vs. McKesson (NYSE:MCK) Financial Review

CONMED (NYSE:CNMD) and McKesson (NYSE:MCK) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, profitability and earnings.

Volatility and Risk

CONMED has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, McKesson has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500.

Valuation and Earnings

This table compares CONMED and McKesson”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CONMED	$1.37 billion	0.83	$47.06 million	$1.51	25.09
McKesson	$359.05 billion	0.30	$3.30 billion	$34.77	24.97

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CONMED	3.42%	14.23%	6.17%
McKesson	1.09%	-338.97%	5.78%

Institutional & Insider Ownership

85.1% of McKesson shares are owned by institutional investors. 3.1% of CONMED shares are owned by insiders. Comparatively, 0.1% of McKesson shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for CONMED and McKesson, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CONMED	1	7	0	0	1.88
McKesson	0	3	13	0	2.81

CONMED presently has a consensus target price of $50.17, suggesting a potential upside of 32.41%. McKesson has a consensus target price of $970.93, suggesting a potential upside of 11.85%. Given CONMED’s higher possible upside, research analysts plainly believe CONMED is more favorable than McKesson.

Summary

CONMED beats McKesson on 8 of the 14 factors compared between the two stocks.

About CONMED

CONMED Corporation, a medical technology company, develops, manufactures, and sells surgical devices and related equipment for surgical procedures worldwide. The company offers orthopedic surgery products, including BioBrace, TruShot with Y-Knot All-In-One Soft Tissue Fixation System, Y-knot All-Suture Anchors, and Agro Knotless Suture Anchors, which provide clinical solutions to orthopedic surgeons for the augmentation and repair of soft tissue injuries, as well as provides supporting products that enable surgeons to perform minimally invasive sports medicine surgeries. It markets orthopedic surgery products under the Hall, CONMED Linvatec, Concept, and Shutt brands. The company also provides battery-powered and autoclavable bone power tool systems for use in orthopedic, arthroscopic, oral/maxillofacial, podiatric, spinal, and cardiothoracic surgeries under Hall surgical brand name. In addition, it offers general surgery products, including clinical insufflation systems under AirSeal brand; smoke removal devices under Buffalo Filter brand; endomechanical products, such as tissue retrieval bags, trocars, suction irrigation devices, graspers, scissors, and dissectors used in minimally invasive surgeries; and electrosurgical solution comprising monopolar and bipolar generators, argon beam coagulation generators, handpieces, smoke management systems and other accessories. Further, the company provides endoscopic technologies, including therapeutic and diagnostic products for use in gastroenterology procedures, and products for the treatment of diseases of the dilatation, hemostasis, biliary, structure management, and infection prevention and patient monitoring, including ECG and EEG electrodes, and cardiac defibrillation pads. It markets its products directly to hospitals, surgery centers, and other healthcare institutions, as well as through medical specialty distributors. CONMED Corporation was incorporated in 1970 and is headquartered in Largo, Florida.

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.