Critical Survey: Trxade Group (TRXD) versus McKesson (MCK)

Trxade Group (OTCMKTS: TRXD) and McKesson (NYSE:MCK) are both retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.

Dividends

McKesson pays an annual dividend of $1.36 per share and has a dividend yield of 0.9%. Trxade Group does not pay a dividend. McKesson pays out 10.8% of its earnings in the form of a dividend. McKesson has increased its dividend for 5 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Trxade Group 9.52% -71.57% 51.76%
McKesson 0.03% 23.55% 4.23%

Insider & Institutional Ownership

90.1% of McKesson shares are owned by institutional investors. 83.3% of Trxade Group shares are owned by insiders. Comparatively, 1.2% of McKesson shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Trxade Group and McKesson’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Trxade Group $2.93 million 6.00 $280,000.00 N/A N/A
McKesson $208.36 billion 0.14 $67.00 million $12.62 11.49

McKesson has higher revenue and earnings than Trxade Group.

Volatility & Risk

Trxade Group has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, McKesson has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Trxade Group and McKesson, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trxade Group 0 1 0 0 2.00
McKesson 1 6 7 0 2.43

McKesson has a consensus target price of $174.43, suggesting a potential upside of 20.25%. Given McKesson’s stronger consensus rating and higher probable upside, analysts plainly believe McKesson is more favorable than Trxade Group.

Summary

McKesson beats Trxade Group on 10 of the 15 factors compared between the two stocks.

Trxade Group Company Profile

Trxade Group, Inc. owns and operates a business-to-business Web-based marketplace focused on the United States pharmaceutical industry. The company offers Web based market platform that enables trade among healthcare buyers and sellers of pharmaceuticals, accessories, and services. Its principal products and services include Trxade.com and InventoryRx.com, which are Web-based pharmaceutical marketplaces; Pharmabayonline that provides access to proprietary pharmaceutical data analytics to the United States-based independent pharmacies, pharmaceutical shortage databases, proposed governmental reimbursement benchmarks comparison and analysis, and a proprietary suggested national retail drug benchmark; and RxGuru, a service-based desktop software application, which provides daily drug pricing and analytics to the independent pharmacists. The company distributes its services through its online platform to independent pharmacies and pharmaceutical suppliers in 18 states of the United States. Trxade Group, Inc. is based in Land O' Lakes, Florida.

McKesson Company Profile

McKesson Corporation provides pharmaceuticals and medical supplies in the United States and internationally. The company operates in two segments, McKesson Distribution Solutions and McKesson Technology Solutions. The McKesson Distribution Solutions segment distributes branded and generic pharmaceutical drugs, and other healthcare-related products; and provides practice management, technology, clinical support, and business solutions to community-based oncology and other specialty practices. This segment also provides specialty pharmaceutical solutions for pharmaceutical manufacturers; and medical-surgical supply distribution, logistics, and other services to healthcare providers. In addition, this segment operates retail pharmacy chains in Europe and Canada, as well as supports independent pharmacy networks in North America and Europe; and supplies integrated pharmacy management systems, automated dispensing systems, and related services to retail, outpatient, central fill, specialty, and mail order pharmacies. This segment serves retail national accounts, including national and regional chains, food/drug combinations, mail order pharmacies, and mass merchandisers; and institutional healthcare providers, such as hospitals, health systems, integrated delivery networks, and long-term care providers, as well as offers its services to pharmaceutical manufacturers. The McKesson Technology Solutions segment provides clinical, financial, and supply chain management solutions to healthcare organizations. McKesson Corporation was founded in 1833 and is headquartered in San Francisco, California.

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