McKesson (NYSE:MCK – Get Free Report) and P3 Health Partners (NASDAQ:PIII – Get Free Report) are both healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.
Volatility & Risk
McKesson has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500. Comparatively, P3 Health Partners has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500.
Earnings and Valuation
This table compares McKesson and P3 Health Partners”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| McKesson | $403.43 billion | 0.26 | $4.76 billion | $37.37 | 24.12 |
| P3 Health Partners | $1.46 billion | 0.03 | -$147.95 million | ($33.00) | -0.19 |
McKesson has higher revenue and earnings than P3 Health Partners. P3 Health Partners is trading at a lower price-to-earnings ratio than McKesson, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares McKesson and P3 Health Partners’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| McKesson | 1.12% | -253.21% | 5.90% |
| P3 Health Partners | -6.55% | N/A | -16.40% |
Institutional & Insider Ownership
85.1% of McKesson shares are owned by institutional investors. Comparatively, 7.7% of P3 Health Partners shares are owned by institutional investors. 0.1% of McKesson shares are owned by insiders. Comparatively, 10.9% of P3 Health Partners shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent recommendations and price targets for McKesson and P3 Health Partners, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| McKesson | 0 | 4 | 14 | 0 | 2.78 |
| P3 Health Partners | 1 | 2 | 1 | 0 | 2.00 |
McKesson currently has a consensus target price of $973.44, indicating a potential upside of 8.00%. P3 Health Partners has a consensus target price of $17.00, indicating a potential upside of 171.13%. Given P3 Health Partners’ higher probable upside, analysts plainly believe P3 Health Partners is more favorable than McKesson.
Summary
McKesson beats P3 Health Partners on 10 of the 14 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 P3 Health Partners
P3 Health Partners Inc., a patient-centered and physician-led population health management company, provides superior care services in the United States. It operates clinics and wellness centers. P3 Health Partners Inc. was founded in 2020 and is based in Henderson, Nevada.
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