Cardinal Health Inc (CAH)vsMcKesson Corporation (MCK)
CAH
Cardinal Health Inc
$207.83
-1.47%
HEALTHCARE · Cap: $48.91B
MCK
McKesson Corporation
$885.84
-1.46%
HEALTHCARE · Cap: $109.34B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 63% more annual revenue ($397.96B vs $244.67B). MCK leads profitability with a 109.0% profit margin vs 68.0%. MCK appears more attractively valued with a PEG of 1.08. MCK earns a higher WallStSmart Score of 57/100 (C).
CAH
Buy53
out of 100
Grade: C-
MCK
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+13.6%
Fair Value
$259.58
Current Price
$207.83
$51.75 discount
Margin of Safety
+41.2%
Fair Value
$1621.15
Current Price
$885.84
$735.31 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 68 of every $100 in revenue as profit
Strong operational efficiency at 123.0%
Safe zone — low bankruptcy risk
18.8% revenue growth
Keeps 109 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Earnings expanding 38.0% YoY
Generating 1.1B in free cash flow
Areas to Watch
Premium valuation, high expectations priced in
ROE of 0.0% — below average capital efficiency
Moderate valuation
ROE of 0.0% — below average capital efficiency
Operating margin of 1.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : CAH
The strongest argument for CAH centers on Profit Margin, Operating Margin, Altman Z-Score. Profitability is solid with margins at 68.0% and operating margin at 123.0%. Revenue growth of 18.8% demonstrates continued momentum.
Bull Case : MCK
The strongest argument for MCK centers on Profit Margin, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 109.0% and operating margin at 1.6%. Revenue growth of 11.4% demonstrates continued momentum.
Bear Case : CAH
The primary concerns for CAH are P/E Ratio, Return on Equity.
Bear Case : MCK
The primary concerns for MCK are P/E Ratio, Return on Equity, Operating Margin.
Key Dynamics to Monitor
CAH profiles as a growth stock while MCK is a mature play — different risk/reward profiles.
CAH carries more volatility with a beta of 0.62 — expect wider price swings.
CAH is growing revenue faster at 18.8% — sustainability is the question.
MCK generates stronger free cash flow (1.1B), providing more financial flexibility.
Bottom Line
MCK scores higher overall (57/100 vs 53/100), backed by strong 109.0% margins and 11.4% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Cardinal Health Inc
HEALTHCARE · MEDICAL DISTRIBUTION · USA
Cardinal Health, Inc. is an American multinational health care services company.
Visit Website →McKesson Corporation
HEALTHCARE · MEDICAL DISTRIBUTION · USA
McKesson Corporation is an American company distributing pharmaceuticals and providing health information technology, medical supplies, and care management tools.
Visit Website →Compare with Other MEDICAL DISTRIBUTION Stocks
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