WallStSmart

Cardinal Health Inc (CAH)vsMcKesson Corporation (MCK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

McKesson Corporation generates 61% more annual revenue ($403.43B vs $250.74B). MCK leads profitability with a 1.2% profit margin vs 0.6%. CAH appears more attractively valued with a PEG of 1.39. MCK earns a higher WallStSmart Score of 53/100 (C-).

CAH

Hold

47

out of 100

Grade: D+

Growth: 4.7Profit: 4.5Value: 4.0Quality: 7.0
Piotroski: 4/9Altman Z: 4.30

MCK

Buy

53

out of 100

Grade: C-

Growth: 8.0Profit: 4.5Value: 4.0Quality: 7.0
Piotroski: 5/9Altman Z: 5.40
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CAHSignificantly Overvalued (-31.2%)

Margin of Safety

-31.2%

Fair Value

$170.63

Current Price

$201.77

$31.14 premium

UndervaluedFair: $170.63Overvalued
MCKSignificantly Overvalued (-65.2%)

Margin of Safety

-65.2%

Fair Value

$576.90

Current Price

$775.66

$198.76 premium

UndervaluedFair: $576.90Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CAH4 strengths · Avg: 9.3/10
Debt/EquityHealth
-3.1510/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.3010/10

Safe zone — low bankruptcy risk

Market CapQuality
$52.43B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.68B8/10

Generating 1.7B in free cash flow

MCK5 strengths · Avg: 9.0/10
Debt/EquityHealth
-3.9710/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
5.4010/10

Safe zone — low bankruptcy risk

Market CapQuality
$91.29B9/10

Large-cap with strong market position

EPS GrowthGrowth
37.2%8/10

Earnings expanding 37.2% YoY

Free Cash FlowQuality
$3.31B8/10

Generating 3.3B in free cash flow

Areas to Watch

CAH4 concerns · Avg: 3.3/10
P/E RatioValuation
34.1x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
0.6%3/10

0.6% margin — thin

Operating MarginProfitability
1.4%3/10

Operating margin of 1.4%

MCK4 concerns · Avg: 3.3/10
PEG RatioValuation
1.524/10

Expensive relative to growth rate

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
1.2%3/10

1.2% margin — thin

Operating MarginProfitability
2.2%3/10

Operating margin of 2.2%

Comparative Analysis Report

WallStSmart Research

Bull Case : CAH

The strongest argument for CAH centers on Debt/Equity, Altman Z-Score, Market Cap. Revenue growth of 11.0% demonstrates continued momentum. PEG of 1.39 suggests the stock is reasonably priced for its growth.

Bull Case : MCK

The strongest argument for MCK centers on Debt/Equity, Altman Z-Score, Market Cap.

Bear Case : CAH

The primary concerns for CAH are P/E Ratio, Return on Equity, Profit Margin. Thin 0.6% margins leave little buffer for downturns.

Bear Case : MCK

The primary concerns for MCK are PEG Ratio, Return on Equity, Profit Margin. Thin 1.2% margins leave little buffer for downturns.

Key Dynamics to Monitor

CAH carries more volatility with a beta of 0.53 — expect wider price swings.

CAH is growing revenue faster at 11.0% — sustainability is the question.

MCK generates stronger free cash flow (3.3B), providing more financial flexibility.

Monitor MEDICAL DISTRIBUTION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MCK scores higher overall (53/100 vs 47/100). Both earn "Buy" and "Hold" 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.

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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.

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