WallStSmart

GlaxoSmithKline PLC ADR (GSK)vsMcKesson Corporation (MCK)

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Smart Verdict

WallStSmart Research — data-driven comparison

McKesson Corporation generates 1114% more annual revenue ($397.96B vs $32.78B). GSK leads profitability with a 17.8% profit margin vs 1.1%. GSK appears more attractively valued with a PEG of 0.50. GSK earns a higher WallStSmart Score of 66/100 (B-).

GSK

Strong Buy

66

out of 100

Grade: B-

Growth: 4.7Profit: 9.0Value: 7.3Quality: 4.0
Piotroski: 5/9Altman Z: 1.26

MCK

Buy

62

out of 100

Grade: C+

Growth: 8.0Profit: 4.5Value: 8.0Quality: 6.3
Piotroski: 6/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GSKFair Value (-3.1%)

Margin of Safety

-3.1%

Fair Value

$56.71

Current Price

$50.41

$6.30 premium

UndervaluedFair: $56.71Overvalued
MCKUndervalued (+63.8%)

Margin of Safety

+63.8%

Fair Value

$2633.47

Current Price

$736.09

$1897.38 discount

UndervaluedFair: $2633.47Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GSK5 strengths · Avg: 9.4/10
PEG RatioValuation
0.5010/10

Growing faster than its price suggests

Return on EquityProfitability
40.9%10/10

Every $100 of equity generates 41 in profit

Operating MarginProfitability
36.3%10/10

Strong operational efficiency at 36.3%

Market CapQuality
$101.38B9/10

Large-cap with strong market position

P/E RatioValuation
13.1x8/10

Attractively priced relative to earnings

MCK5 strengths · Avg: 8.6/10
Debt/EquityHealth
-6.6410/10

Conservative balance sheet, low leverage

Market CapQuality
$92.45B9/10

Large-cap with strong market position

PEG RatioValuation
0.908/10

Growing faster than its price suggests

EPS GrowthGrowth
38.0%8/10

Earnings expanding 38.0% YoY

Free Cash FlowQuality
$3.42B8/10

Generating 3.4B in free cash flow

Areas to Watch

GSK3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
1.5%4/10

1.5% revenue growth

Debt/EquityHealth
1.103/10

Elevated debt levels

Altman Z-ScoreHealth
1.262/10

Distress zone — elevated risk

MCK3 concerns · Avg: 3.0/10
Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
1.1%3/10

1.1% margin — thin

Operating MarginProfitability
1.6%3/10

Operating margin of 1.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : GSK

The strongest argument for GSK centers on PEG Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 17.8% and operating margin at 36.3%. PEG of 0.50 suggests the stock is reasonably priced for its growth.

Bull Case : MCK

The strongest argument for MCK centers on Debt/Equity, Market Cap, PEG Ratio. Revenue growth of 11.4% demonstrates continued momentum. PEG of 0.90 suggests the stock is reasonably priced for its growth.

Bear Case : GSK

The primary concerns for GSK are Revenue Growth, Debt/Equity, Altman Z-Score.

Bear Case : MCK

The primary concerns for MCK are Return on Equity, Profit Margin, Operating Margin. Thin 1.1% margins leave little buffer for downturns.

Key Dynamics to Monitor

MCK carries more volatility with a beta of 0.35 — expect wider price swings.

MCK is growing revenue faster at 11.4% — sustainability is the question.

MCK generates stronger free cash flow (3.4B), providing more financial flexibility.

Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

GSK scores higher overall (66/100 vs 62/100), backed by strong 17.8% margins. MCK offers better value entry with a 63.8% margin of safety. Both earn "Strong 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.

GlaxoSmithKline PLC ADR

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

GlaxoSmithKline plc is dedicated to the creation, discovery, development, manufacture and marketing of pharmaceuticals, vaccines, over-the-counter drugs and health-related consumer products in the UK, US and internationally. The company is headquartered in Brentford, the United Kingdom.

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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