What is Medline’s stock price, and are they publicly traded? Unfortunately, investors cannot purchase shares of Medline because it is a private company. However, UnitedHealth Group (NYSE: UNH), Medtronic (NYSE: MDT), and McKesson (NYSE: MCK) are medical supply stocks that traders can invest in.
One sector that never gets as much coverage or hype is healthcare and medical supplies. Why? It’s boring even though it is a necessary part of our healthcare system. Imagine a hospital without gloves, masks, antibacterial cleaners, and surgical equipment. These are all provided by companies like Medline to hospitals and clinics worldwide. This equipment helps provide clean and efficient medical care and is essential to our healthcare.
It’s just a boring sector to talk about when it comes to investing! This article will discuss investing in Medline stock, Medline’s corporate history, and investing in the healthcare and medical supply industry.
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Medline Introduction (No Stock Symbol)
Medline is an American multinational medical supply corporation founded in 1966. It is headquartered in Northfield, Illinois, but has offices in more than 125 countries worldwide. Medline is a private company owned by a consortium of private equity firms which acquired the company in 2021.
These firms include some of the largest institutions in the world, such as Blackstone and the Carlyle Group. The consortium acquired Medline for $34 billion, making it one of the largest buyouts in history.
The company is the largest privately owned medical supply and equipment brand in the United States. Although Medline started in 1966, the company can trace its origins back to 1910 when A.L. Mills established the Northwestern Garment Factory to produce aprons for workers in stockyards.
Mills’ sons took over his business in the 1920s, adding medical supplies distribution to the company’s profile. In 1966, A.L. Mills’ two grandsons founded Medline with just one warehouse and loading dock in Illinois.
Medline has been an aggressive acquirer of businesses over the years. One of the more significant brands that Medline acquired was Curad, one of the world’s largest makers of bandaids and surgical tape.
Medline is also the producer of multiple home-branded generic medical supply offerings. It makes medical supplies for stores like CVS, Target, Walgreens, and Dollar General. As of 2024, Medline produces and distributes more than 550,000 medical and clinical products. In 2023, Medline reported over $23 billion in revenue and introduced Jim Boyle as the new CEO, effective in October. Can I buy Medline stock?
Can I Buy Medline Stock?
As of August 2024, you cannot buy Medline stock. Why? As I mentioned, Medline is the largest privately owned medical supply and equipment brand in the US and one of the largest in the world. It is not publicly traded and has never been a public company since it started in 1966.
One thing to consider for those interested in investing in Medline: In July 2024, there were reports that Medline would seek an IPO in 2025. Medline would be seeking a valuation of more than $50 billion.
If Medline went public, would you buy the stock? I would certainly consider it. You get a proven industry leader with an established global customer base with Medline. If the IPO went ahead in 2025, I would consider adding Medline to my portfolio long and hard.
Medline Stock Competitors
Healthcare is the backbone of a successful and productive economy. You’ve heard of the old saying “health is wealth”? That’s exactly why healthcare and medical supply companies like Medline are important to the global economy.
Just because you can’t buy Medline stock doesn’t mean you can’t invest in the industry! Here are a few healthcare and medical supply stocks on my watchlist for you to consider.
1. UnitedHealth Group Inc (NYSE: UNH)
I recommend UnitedHealth Group as the first healthcare and Medline stock alternative. This company likely needs no introduction as it is the largest healthcare brand in the world.
It is the eighth-largest company in the world by annual revenue and the sixteenth-largest by market capitalization. UnitedHealth services more than 50 million customers worldwide, although about 90% are in the United States.
UnitedHealth stock has been an absolute monster for shareholders. Over the past five years, it has returned more than 150%, not including dividends.
It is the largest weighted component of the Dow Jones Industrial Average and a major component of the S&P 100 and S&P 500 indexes. UnitedHealth is the type of stock foundational to your long-term portfolio and the one healthcare stock I recommend every investor consider owning.
2. Medtronic PLC (NYSE: MDT)
Medtronic PLC is an American-Irish medical device company founded in 1949. The company has headquarters in both the United States and Ireland due to the acquisition of the Irish company Covidien back in 2015.
Medtronic is a global medical supply brand in over 150 countries and employs nearly 100,000 people worldwide. The company produces many medical devices, including respirators, pacemakers, spinal implants, and implantable drug delivery systems.
How has Medtronic been as an investment? Over the past five years, Medtronic has underperformed the market, returning a loss of about 20% to shareholders. Although the performance has been disappointing, Medtronic has provided relative stability even through the lowest market drawdowns.
The stock also pays out a solid dividend with a current yield of 3.3%. Medtronic is a $100 billion+ company with a strong global presence and competitive moat versus its industry rivals. So consider this as a Medline stock alternative.
3. McKesson Corp (NYSE: MCK)
McKesson Corp is one of the world’s largest pharmaceutical and medical supply distributors. It was founded in 1833 and is one of the top ten companies in the United States in annual revenue. McKesson earned more in 2024 than Costco, JP Morgan Chase, and Microsoft.
The company is also responsible for nearly one-third of pharmaceutical distribution in North America, particularly through its subsidiaries like Rexall Drugs, Health Mart, and Uniprix.
This stock has been a major compounder over the years. Recently, McKesson saw a major boost during the COVID-19 pandemic as one of the leading distributors of vaccines.
Over the past five years, the shares of MCK have returned a staggering 278%, handily beating the market over that period. McKesson is a component of the S&P 500 index and pays a modest dividend yield of 0.52%.
4. Cardinal Health (NYSE: CAH)
Cardinal Health is another pharmaceutical and medical services company among the top 15 largest companies in the United States in annual revenue. This brand is the fourteenth-largest company ahead of Chevron and Bank of America and narrowly behind Microsoft.
Cardinal is one of the largest manufacturers and distributors of surgical equipment and medical apparel in the United States. In recent estimates, Cardinal provides medical supplies to more than 75% of American hospitals.
Not surprisingly, Cardinal Health stock has provided market-beating returns to shareholders. Shares have returned nearly 155% over the past five years of trading. The stock is a component of the S&P 500 index and pays a dividend yield of 1.86% to shareholders each quarter.
5. Edwards Lifesciences Corp (NYSE: EW)
The final stock on my healthcare and medical supply recommendations list is Edwards Lifesciences Corp. This company was founded in 1958 and is in Irvine, California.
Edwards is a little more specialized than the other stocks on this list. It manufactures and distributes heart valves and hemodynamic monitoring devices and provides critical care services.
You’re not alone if you have never heard of Edwards Lifesciences. The company mostly flies under the radar despite its market capitalization of $42 billion. The stock is a component of the S&P 500 but hasn’t quite provided the same returns as other stocks on this list.
Shares of EW have returned a modest loss of 1.8% over the past five years; as of August 2024, it does not pay a dividend to shareholders.
Final Thoughts: Medline Stock
Clearly, from the list of stocks I recommended, medical supply stocks have been a great investment. It isn’t the sexiest industry, but seven of the top 20 Fortune 500 companies are in healthcare services or medical supplies. As a result, this shows just how much annual revenue these companies bring in each year.
Not only have these stocks provided market-beating returns in recent years, but many also pay a nice dividend to shareholders. As the population ages and life expectancy increases, healthcare services and medical supplies will be in even higher demand.
I will add Medline stock to this list if it proceeds with its IPO in 2025. Medline is the top medical supply and services company in the United States, except for UnitedHealth.
If the company goes public, it should immediately be at the top of the healthcare and medical supply sector. Although you cannot currently buy Medline stock, there is a chance you will be able to as early as next year!
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Frequently Asked Questions
As of August 2024, Medline is not a public company. Medline is the largest privately owned manufacturer and distributor of medical supplies in the United States. You cannot currently buy Medline stock on any public stock market.
According to multiple reports, Medline is exploring an IPO as early as 2025. The company is seeking a valuation of at least $50 billion, which could make it one of the largest IPO debuts in history.
Medline is a private company owned by some of the largest institutions in the country. In June 2021, three majority owners in Blackstone, the Carlyle Group, Hellman, and Friedman acquired Medline.
In addition to medical supplies and devices, Medline also sells more than 2,000 pharmaceutical products. These products include both branded and generic drugs as well as injectable treatments.
