Cardinal Health Inc (CAH)vsVertex Pharmaceuticals Inc (VRTX)
CAH
Cardinal Health Inc
$183.65
-0.88%
HEALTHCARE · Cap: $43.39B
VRTX
Vertex Pharmaceuticals Inc
$429.82
+1.13%
HEALTHCARE · Cap: $107.87B
Smart Verdict
WallStSmart Research — data-driven comparison
Cardinal Health Inc generates 1952% more annual revenue ($250.74B vs $12.22B). VRTX leads profitability with a 35.5% profit margin vs 0.6%. CAH appears more attractively valued with a PEG of 1.25. VRTX earns a higher WallStSmart Score of 66/100 (B-).
CAH
Hold47
out of 100
Grade: D+
VRTX
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+73.9%
Fair Value
$859.62
Current Price
$183.65
$675.97 discount
Margin of Safety
+56.6%
Fair Value
$989.67
Current Price
$429.82
$559.85 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Generating 1.7B in free cash flow
Keeps 36 of every $100 in revenue as profit
Strong operational efficiency at 38.1%
Earnings expanding 61.4% YoY
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 24 in profit
Areas to Watch
Moderate valuation
ROE of 0.0% — below average capital efficiency
0.6% margin — thin
Operating margin of 1.4%
Expensive relative to growth rate
Moderate valuation
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull 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 : VRTX
The strongest argument for VRTX centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 35.5% and operating margin at 38.1%.
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 : VRTX
The primary concerns for VRTX are PEG Ratio, P/E Ratio, Piotroski F-Score.
Key Dynamics to Monitor
CAH profiles as a value stock while VRTX is a mature play — different risk/reward profiles.
CAH carries more volatility with a beta of 0.54 — expect wider price swings.
CAH is growing revenue faster at 11.0% — sustainability is the question.
CAH generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
VRTX scores higher overall (66/100 vs 47/100), backed by strong 35.5% margins. CAH offers better value entry with a 73.9% margin of safety. Both earn "Strong 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.
Visit Website →Vertex Pharmaceuticals Inc
HEALTHCARE · BIOTECHNOLOGY · USA
Vertex Pharmaceuticals, Inc. is an American biopharmaceutical company based in Boston, Massachusetts.
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