Critical Analysis: Acadia Healthcare (NASDAQ:ACHC) & McKesson Europe (OTCMKTS:CAKFY)

McKesson Europe (OTCMKTS:CAKFY) and Acadia Healthcare (NASDAQ:ACHC) are both healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, dividends, risk, analyst recommendations and earnings.

Profitability

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

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

Institutional and Insider 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 large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
McKesson Europe	N/A	N/A	N/A	$0.09	47.67
Acadia Healthcare	$3.31 billion	0.85	-$1.10 billion	($12.45)	-2.43

McKesson Europe has higher earnings, but lower revenue 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 breakdown of recent ratings and recommmendations for McKesson Europe and Acadia Healthcare, as reported by MarketBeat.com.

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

Acadia Healthcare has a consensus price target of $29.85, suggesting a potential downside of 1.24%. Given Acadia Healthcare’s stronger consensus rating and higher possible upside, analysts plainly believe Acadia Healthcare is more favorable than McKesson Europe.

Summary

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

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.

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.