Diplomat Pharmacy (NYSE: DPLO) and Walgreens Boots Alliance (NASDAQ:WBA) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, risk, profitability, valuation, dividends and earnings.
Risk and Volatility
Diplomat Pharmacy has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500. Comparatively, Walgreens Boots Alliance has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.
This table compares Diplomat Pharmacy and Walgreens Boots Alliance’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Diplomat Pharmacy||$4.49 billion||0.32||$15.51 million||$0.84||23.05|
|Walgreens Boots Alliance||$118.21 billion||0.54||$4.08 billion||$5.10||12.51|
Walgreens Boots Alliance has higher revenue and earnings than Diplomat Pharmacy. Walgreens Boots Alliance is trading at a lower price-to-earnings ratio than Diplomat Pharmacy, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for Diplomat Pharmacy and Walgreens Boots Alliance, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Walgreens Boots Alliance||0||9||12||0||2.57|
Diplomat Pharmacy presently has a consensus target price of $25.50, suggesting a potential upside of 31.71%. Walgreens Boots Alliance has a consensus target price of $83.84, suggesting a potential upside of 31.37%. Given Diplomat Pharmacy’s higher possible upside, equities research analysts plainly believe Diplomat Pharmacy is more favorable than Walgreens Boots Alliance.
This table compares Diplomat Pharmacy and Walgreens Boots Alliance’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Walgreens Boots Alliance||3.33%||20.38%||8.42%|
Walgreens Boots Alliance pays an annual dividend of $1.60 per share and has a dividend yield of 2.5%. Diplomat Pharmacy does not pay a dividend. Walgreens Boots Alliance pays out 31.4% of its earnings in the form of a dividend.
Institutional & Insider Ownership
63.7% of Diplomat Pharmacy shares are held by institutional investors. Comparatively, 60.9% of Walgreens Boots Alliance shares are held by institutional investors. 30.2% of Diplomat Pharmacy shares are held by company insiders. Comparatively, 14.8% of Walgreens Boots Alliance shares are held by company 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.
Walgreens Boots Alliance beats Diplomat Pharmacy on 10 of the 16 factors compared between the two stocks.
Diplomat Pharmacy Company Profile
Diplomat Pharmacy, Inc. operates as an independent specialty pharmacy in the United States. The company stocks, dispenses, and distributes prescriptions for various biotechnology and specialty pharmaceutical manufacturers. It also provides specialty infusion pharmacy, patient care coordination, clinical, compliance and persistency program, patient financial assistance, specialty pharmacy training/consulting, benefits investigation, prior authorization, risk evaluation and medication strategy, retail specialty, and hub services, as well as clinical and administrative support services to hospitals and health systems. The company's primary focus is on medication management programs for individuals with complex chronic diseases, including oncology, immunology, hepatitis, multiple sclerosis, specialized infusion therapy, and various other serious or long-term conditions. The company was founded in 1975 and is headquartered in Flint, Michigan.
Walgreens Boots Alliance Company Profile
Walgreens Boots Alliance, Inc. (Walgreens Boots Alliance) is a holding company. The Company is a global pharmacy-led, health and wellbeing enterprise. Walgreens Boots Alliance operates through three divisions, including Retail Pharmacy USA, Retail Pharmacy International and Pharmaceutical Wholesale. The Company’s products are marketed under a number of brands, which include No7, the Botanics range, Almus (generic medicines), Boots Pharmaceuticals and Soap & Glory (bathing and beauty brand). In addition, the Company has investments in Guangzhou Pharmaceuticals Corporation and Nanjing Pharmaceutical Company Limited. The Company operates in around 25 countries, which include the wholesale and distribution network with over 340 distribution centers and more than 180,000 pharmacies, health centers and hospitals in 19 countries.
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