WallStSmart

Cardinal Health Inc (CAH)vsTarget Corporation (TGT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cardinal Health Inc generates 139% more annual revenue ($250.74B vs $104.78B). TGT leads profitability with a 3.5% profit margin vs 0.6%. CAH appears more attractively valued with a PEG of 1.25. TGT earns a higher WallStSmart Score of 48/100 (D+).

CAH

Hold

47

out of 100

Grade: D+

Growth: 4.7Profit: 4.5Value: 7.3Quality: 5.8
Piotroski: 4/9Altman Z: 4.30

TGT

Hold

48

out of 100

Grade: D+

Growth: 2.0Profit: 5.5Value: 7.3Quality: 5.3
Piotroski: 4/9Altman Z: 2.48
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CAHUndervalued (+73.9%)

Margin of Safety

+73.9%

Fair Value

$859.62

Current Price

$183.65

$675.97 discount

UndervaluedFair: $859.62Overvalued
TGTUndervalued (+33.2%)

Margin of Safety

+33.2%

Fair Value

$171.51

Current Price

$125.25

$46.26 discount

UndervaluedFair: $171.51Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CAH2 strengths · Avg: 9.0/10
Altman Z-ScoreHealth
4.3010/10

Safe zone — low bankruptcy risk

Free Cash FlowQuality
$1.68B8/10

Generating 1.7B in free cash flow

TGT4 strengths · Avg: 8.5/10
Market CapQuality
$56.89B9/10

Large-cap with strong market position

Return on EquityProfitability
24.0%9/10

Every $100 of equity generates 24 in profit

P/E RatioValuation
15.4x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$2.29B8/10

Generating 2.3B in free cash flow

Areas to Watch

CAH4 concerns · Avg: 3.3/10
P/E RatioValuation
28.2x4/10

Moderate valuation

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%

TGT4 concerns · Avg: 3.0/10
PEG RatioValuation
2.444/10

Expensive relative to growth rate

Profit MarginProfitability
3.5%3/10

3.5% margin — thin

Operating MarginProfitability
4.9%3/10

Operating margin of 4.9%

Revenue GrowthGrowth
-1.5%2/10

Revenue declined 1.5%

Comparative Analysis Report

WallStSmart Research

Bull Case : CAH

The strongest argument for CAH centers on Altman Z-Score, Free Cash Flow. Revenue growth of 11.0% demonstrates continued momentum. PEG of 1.25 suggests the stock is reasonably priced for its growth.

Bull Case : TGT

The strongest argument for TGT centers on Market Cap, Return on Equity, P/E Ratio.

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 : TGT

The primary concerns for TGT are PEG Ratio, Profit Margin, Operating Margin. Thin 3.5% margins leave little buffer for downturns.

Key Dynamics to Monitor

TGT carries more volatility with a beta of 1.01 — expect wider price swings.

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

TGT generates stronger free cash flow (2.3B), providing more financial flexibility.

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

Bottom Line

TGT scores higher overall (48/100 vs 47/100). CAH offers better value entry with a 73.9% margin of safety. Both earn "Hold" 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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Target Corporation

CONSUMER DEFENSIVE · DISCOUNT STORES · USA

Target Corporation is an American retail corporation. Their retail formats include the discount store Target, the hypermarket SuperTarget, and small-format stores previously named CityTarget and TargetExpress before being consolidated under the Target branding.

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