Johnson & Johnson (JNJ)vsMcKesson Corporation (MCK)
JNJ
Johnson & Johnson
$275.19
+1.53%
HEALTHCARE · Cap: $615.87B
MCK
McKesson Corporation
$960.56
-0.67%
HEALTHCARE · Cap: $117.15B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 314% more annual revenue ($410.98B vs $99.33B). JNJ leads profitability with a 16.2% profit margin vs 1.1%. MCK appears more attractively valued with a PEG of 1.66. JNJ earns a higher WallStSmart Score of 57/100 (C).
JNJ
Buy57
out of 100
Grade: C
MCK
Hold43
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-83.0%
Fair Value
$144.12
Current Price
$275.19
$131.07 premium
Margin of Safety
-59.4%
Fair Value
$598.05
Current Price
$960.56
$362.51 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 25.1%
Generating 6.4B in free cash flow
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Areas to Watch
Premium valuation, high expectations priced in
Weak financial health signals
Expensive relative to growth rate
Earnings declined 96.0%
Expensive relative to growth rate
Moderate valuation
ROE of 0.0% — below average capital efficiency
1.1% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : JNJ
The strongest argument for JNJ centers on Market Cap, Operating Margin, Free Cash Flow. Profitability is solid with margins at 16.2% and operating margin at 25.1%.
Bull Case : MCK
The strongest argument for MCK centers on Debt/Equity, Altman Z-Score, Market Cap.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, Piotroski F-Score, PEG Ratio.
Bear Case : MCK
The primary concerns for MCK are PEG Ratio, P/E Ratio, Return on Equity. Thin 1.1% margins leave little buffer for downturns.
Key Dynamics to Monitor
JNJ profiles as a mature stock while MCK is a value play — different risk/reward profiles.
MCK carries more volatility with a beta of 0.30 — expect wider price swings.
MCK is growing revenue faster at 7.7% — sustainability is the question.
JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (57/100 vs 43/100), backed by strong 16.2% margins. 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.
Johnson & Johnson
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Johnson & Johnson (J&J) is an American multinational corporation founded in 1886 that develops medical devices, pharmaceuticals, and consumer packaged goods. Its common stock is a component of the Dow Jones Industrial Average and the company is ranked No. 36 on the 2021 Fortune 500 list of the largest United States corporations by total revenue. Johnson & Johnson is one of the world's most valuable companies, and is one of only two U.S.-based companies that has a prime credit rating of AAA, higher than that of the United States government.
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 DRUG MANUFACTURERS - GENERAL Stocks
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