Cardinal Health (NYSE: CAH) and MWI Veterinary Supply (NASDAQ:MWIV) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.
Institutional & Insider Ownership
87.1% of Cardinal Health shares are owned by institutional investors. 0.9% of Cardinal Health shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares Cardinal Health and MWI Veterinary Supply’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MWI Veterinary Supply||2.51%||15.74%||7.86%|
Valuation & Earnings
This table compares Cardinal Health and MWI Veterinary Supply’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cardinal Health||$129.98 billion||0.16||$2.96 billion||$4.04||16.58|
|MWI Veterinary Supply||N/A||N/A||N/A||N/A||N/A|
Cardinal Health has higher revenue and earnings than MWI Veterinary Supply.
Cardinal Health pays an annual dividend of $1.85 per share and has a dividend yield of 2.8%. MWI Veterinary Supply does not pay a dividend. Cardinal Health pays out 45.8% of its earnings in the form of a dividend. Cardinal Health has increased its dividend for 12 consecutive years.
This is a breakdown of current ratings and recommmendations for Cardinal Health and MWI Veterinary Supply, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MWI Veterinary Supply||0||0||0||0||N/A|
Cardinal Health presently has a consensus price target of $81.09, suggesting a potential upside of 21.07%. Given Cardinal Health’s higher probable upside, equities research analysts clearly believe Cardinal Health is more favorable than MWI Veterinary Supply.
Cardinal Health beats MWI Veterinary Supply on 8 of the 11 factors compared between the two stocks.
Cardinal Health Company Profile
Cardinal Health, Inc. is a healthcare services and products company. The Company operates through two segments: Pharmaceutical and Medical. The Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, over-the-counter healthcare and consumer products. This segment also operates nuclear pharmacies and cyclotron facilities; provides pharmacy management services to hospitals, as well as medication therapy management and patient outcomes services to hospitals, other healthcare providers and payers, and provides services to healthcare companies. The Medical segment distributes a range of medical, surgical and laboratory products, and provides services to hospitals, ambulatory surgery centers, clinical laboratories and other healthcare providers. This segment also manufactures, sources and develops its own Cardinal Health brand medical and surgical products. It provides post-acute care management and transition services, and software to hospitals.
MWI Veterinary Supply Company Profile
MWI Veterinary Supply, Inc. (MWI) is a distributor of animal health products to veterinarians across the United States of America and United Kingdom. MWI sells both companion animal and production animal products including pharmaceuticals, vaccines, parasiticides, diagnostics, micro feed ingredients, supplies, pet food, capital equipment and nutritional products. MWI also offers customers a variety of value-added services, including its e-commerce platform, technology management systems, pharmacy fulfillment, inventory management system, equipment procurement consultation, special order fulfillment, educational seminars and pet cremation. As of September 30, 2014, the Company operates 23 distribution centers located across the United States and one distribution center in the United Kingdom.
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