McKesson Europe (OTCMKTS:CAKFY) versus Acadia Healthcare (NASDAQ:ACHC) Critical Review

Acadia Healthcare (NASDAQ:ACHC) and McKesson Europe (OTCMKTS:CAKFY) 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, analyst recommendations, earnings, institutional ownership and risk.

Insider and Institutional Ownership

0.0% of McKesson Europe shares are owned by institutional investors. 1.2% of Acadia Healthcare shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Acadia Healthcare and McKesson Europe”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Acadia Healthcare	$3.31 billion	0.78	-$1.10 billion	($12.45)	-2.23
McKesson Europe	N/A	N/A	N/A	$0.09	47.67

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Acadia Healthcare and McKesson Europe, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Acadia Healthcare	2	5	7	1	2.47
McKesson Europe	0	0	0	0	0.00

Acadia Healthcare currently has a consensus target price of $29.85, suggesting a potential upside of 7.28%. Given Acadia Healthcare’s stronger consensus rating and higher probable upside, analysts plainly believe Acadia Healthcare is more favorable than McKesson Europe.

Profitability

This table compares Acadia Healthcare and McKesson Europe’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Acadia Healthcare	-33.44%	6.19%	2.42%
McKesson Europe	N/A	N/A	N/A

Summary

Acadia Healthcare beats McKesson Europe on 8 of the 12 factors compared between the two stocks.

About Acadia Healthcare

Acadia Healthcare Company, Inc. provides behavioral healthcare services in the United States and Puerto Rico. The company develops and operates acute inpatient psychiatric facilities, specialty treatment facilities comprising residential recovery facilities and eating disorder facilities, comprehensive treatment centers, and residential treatment centers, as well as facilities offering outpatient behavioral healthcare services for the behavioral healthcare and recovery needs of communities. Acadia Healthcare Company, Inc. was founded in 2005 and is headquartered in Franklin, Tennessee.

About McKesson Europe

McKesson Europe AG provides logistics and other services to the pharmaceutical and healthcare sectors worldwide. The company operates through two divisions, Pharmaceutical Distribution and Retail Pharmacy. The Pharmaceutical Distribution division engages in the wholesale of pharmaceutical and other health care products. This division serves its customers through 90 wholesale branches that supply pharmaceutical products to approximately 40,000 pharmacies and hospitals, as well as operates 70 distribution centers in Europe. The Retail Pharmacy division operates approximately 2,000 owned pharmacies and approximately 8,000 members in its brand partnership program. This division also provides outpatient drug, e-commerce, and home care services primarily in Belgium, Ireland, Italy, and the United Kingdom under the Lloyds Pharmacy brand. In addition, this division provides traditional prescription drugs, over-the-counter products, and medical services. It also provides other services for pharmacists, such as the organization and management of pharmacy cooperation programs in the Great Britain, France, Portugal, and Belgium. The company was formerly known as Celesio AG and changed its name to McKesson Europe AG in September 2017. The company was founded in 1835 and is headquartered in Stuttgart, Germany. McKesson Europe AG is a subsidiary of McKesson Corporation.