Beyond Pills and Needles: How Stewart Investors' Six Companies Are Redefining Health Equity Through Innovation

The global health sector is undergoing a quiet revolution. Beyond the glare of pharmaceutical breakthroughs, a cohort of companies is addressing systemic inequities in healthcare access, environmental sustainability, and preventive care. Stewart Investors has identified six such firms—operating in insurance, hygiene, consumer health, industrial gases, retail pharmacy, and software—as pioneers in advancing health equity through disruptive innovation. Their strategies blend financial resilience with societal impact, offering investors a compelling blueprint for long-term growth aligned with ESG principles.

Preventive Care: Empowering Self-Care and Accessibility

Preventive care forms the bedrock of health equity, reducing reliance on costly treatments by addressing conditions before they escalate. Haleon (HLT.L), the U.K.-based consumer health giant, exemplifies this through its portfolio of brands like Sensodyne, Advil, and Centrum. By democratizing access to over-the-counter medications and vitamins, Haleon reduces strain on overburdened healthcare systems while fostering self-care. Its sales grew at a 5.8% CAGR over five years, but its true value lies in its role as a standalone consumer health leader spun from GlaxoSmithKline in 2022.

Meanwhile, Raia Drogasil (RADT3.SA), Brazil's largest pharmacy chain, is expanding healthcare access in underserved regions through economies of scale and digital integration. Its pharmacies act as frontline healthcare hubs, offering affordable medications and diagnostic services. With sales surging at a blistering 17.2% CAGR since 2019, Raia Drogasil underscores how accessibility drives both social impact and profitability.

Digital Health: Accelerating Innovation and Efficiency

The digital health revolution is reshaping how treatments are developed and delivered. Veeva Systems (VEEV), a U.S.-based cloud software company, is a linchpin here. Its platforms streamline clinical trial management and regulatory compliance for pharmaceutical firms, cutting development timelines by months. As a public benefit corporation (PBC), Veeva legally prioritizes societal impact alongside profits—a hallmark of Stewart's ESG criteria. Its 20% CAGR in sales since 2019 reflects its strategic position in an industry where efficiency is paramount.

Environmental Wellness: Sustainability as a Health Imperative

Environmental degradation exacerbates health risks—from pollution to resource scarcity—making sustainability a core pillar of health equity. Cintas Corporation (CTAS), a U.S. workplace hygiene supplier, is pioneering circular economy practices. Its uniform rental model uses 50% less water and energy than home laundering, reducing textile waste while maintaining hygiene standards. With free cash flow growing at 16.1% annually, Cintas demonstrates how environmental stewardship can fuel financial performance.

Linde (LIN), the U.K. gas producer, underpins healthcare infrastructure by supplying oxygen for surgeries, intensive care units, and vaccine storage. Its role in enabling critical medical procedures, coupled with a 26.6% CAGR in EPS since 2019, highlights the unsung importance of industrial gases in global health.

The Insurance Safety Net: Brown & Brown's Role in Equity

Health equity isn't just about treatment—it's about protection. Brown & Brown (BRO), a U.S. insurance brokerage, ensures small businesses and individuals can afford coverage, reducing financial risks tied to unexpected medical costs. Its 15.1% sales growth since 2019 reflects a growing demand for affordable, reliable health solutions.

Investment Implications: Growth Meets Purpose

Stewart Investors' portfolio of these six companies aligns with three key trends:
1. ESG Integration: All six firms score highly on environmental sustainability (Cintas, Linde), social equity (Raia Drogasil, Haleon), and governance (Veeva's PBC structure).
2. Resilient Financials: Their compound annual growth rates in sales (5.8%–20%) and free cash flow (12.5%–26.3%) suggest robust scalability.
3. Systemic Impact: They address gaps in access, prevention, and infrastructure—areas where traditional pharma alone cannot deliver equity.

For investors, these firms offer a diversified ESG-driven play. Veeva (VEEV) and Brown & Brown (BRO) stand out for high-growth trajectories, while Raia Drogasil (RADT3) and Haleon (HLT.L) represent emerging markets and consumer health leadership, respectively.

Conclusion: A Blueprint for Health Equity Investing

Stewart Investors' selections are a masterclass in identifying companies that solve real-world health challenges while delivering financial returns. Their focus on preventive care, digital efficiency, and environmental sustainability aligns with the U.N.'s Sustainable Development Goals (SDGs), particularly SDG 3 (Good Health and Well-being) and SDG 12 (Responsible Consumption).

For investors seeking exposure to health equity, these six firms offer a blend of innovation, scalability, and purpose. As the world moves beyond reactive healthcare models, the companies advancing equity through prevention, technology, and sustainability are poised to lead the next chapter of global health.

Data as of December 31, 2024. Past performance is not indicative of future results. Consult financial advisors before making investment decisions.