McKesson Corporation (MCK)vs3M Company (MMM)
MCK
McKesson Corporation
$879.75
-0.25%
HEALTHCARE · Cap: $108.85B
MMM
3M Company
$148.05
+0.94%
INDUSTRIALS · Cap: $77.25B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 1495% more annual revenue ($397.96B vs $24.95B). MMM leads profitability with a 13.0% profit margin vs 1.1%. MCK appears more attractively valued with a PEG of 1.07. MCK earns a higher WallStSmart Score of 57/100 (C).
MCK
Buy57
out of 100
Grade: C
MMM
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+41.2%
Fair Value
$1622.09
Current Price
$879.75
$742.34 discount
Margin of Safety
-323.6%
Fair Value
$40.80
Current Price
$148.05
$107.25 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Earnings expanding 38.0% YoY
Generating 1.1B in free cash flow
Every $100 of equity generates 76 in profit
Large-cap with strong market position
Generating 1.3B in free cash flow
Areas to Watch
Moderate valuation
ROE of 0.0% — below average capital efficiency
1.1% margin — thin
Operating margin of 1.6%
Trading at 16.7x book value
2.0% revenue growth
Earnings declined 19.9%
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : MCK
The strongest argument for MCK centers on Debt/Equity, Altman Z-Score, Market Cap. Revenue growth of 11.4% demonstrates continued momentum. PEG of 1.07 suggests the stock is reasonably priced for its growth.
Bull Case : MMM
The strongest argument for MMM centers on Return on Equity, Market Cap, Free Cash Flow. PEG of 1.43 suggests the stock is reasonably priced for its growth.
Bear Case : MCK
The primary concerns for MCK are P/E Ratio, Return on Equity, Profit Margin. Thin 1.1% margins leave little buffer for downturns.
Bear Case : MMM
The primary concerns for MMM are Price/Book, Revenue Growth, EPS Growth. Debt-to-equity of 2.75 is elevated, increasing financial risk.
Key Dynamics to Monitor
MMM carries more volatility with a beta of 1.13 — expect wider price swings.
MCK is growing revenue faster at 11.4% — sustainability is the question.
MMM generates stronger free cash flow (1.3B), providing more financial flexibility.
Monitor MEDICAL DISTRIBUTION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MCK scores higher overall (57/100 vs 54/100) and 11.4% revenue growth. Both earn "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.
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 →3M Company
INDUSTRIALS · CONGLOMERATES · USA
The 3M Company is an American multinational conglomerate corporation operating in the fields of industry, worker safety, US health care, and consumer goods. The company produces over 60,000 products under several brands, including adhesives, abrasives, laminates, passive fire protection, personal protective equipment, window films, paint protection films, dental and orthodontic products, electrical and electronic connecting and insulating materials, medical products, car-care products, electronic circuits, healthcare software and optical films. It is based in Maplewood, a suburb of Saint Paul, Minnesota.
Visit Website →Compare with Other MEDICAL DISTRIBUTION Stocks
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