McKesson Corporation (MCK)vsMerck & Company Inc (MRK)
MCK
McKesson Corporation
$763.51
+2.47%
HEALTHCARE · Cap: $89.39B
MRK
Merck & Company Inc
$128.66
+2.56%
HEALTHCARE · Cap: $283.78B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 513% more annual revenue ($403.43B vs $65.77B). MRK leads profitability with a 13.6% profit margin vs 1.2%. MCK appears more attractively valued with a PEG of 1.49. MCK earns a higher WallStSmart Score of 55/100 (C).
MCK
Buy55
out of 100
Grade: C
MRK
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-65.1%
Fair Value
$577.34
Current Price
$763.51
$186.17 premium
Margin of Safety
-40.6%
Fair Value
$80.96
Current Price
$128.66
$47.70 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 37.2% YoY
Generating 3.3B in free cash flow
Mega-cap, among the largest globally
Strong operational efficiency at 38.6%
Generating 2.9B in free cash flow
Areas to Watch
ROE of 0.0% — below average capital efficiency
1.2% margin — thin
Operating margin of 2.2%
Premium valuation, high expectations priced in
4.9% revenue growth
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : MCK
The strongest argument for MCK centers on Debt/Equity, Altman Z-Score, Market Cap. PEG of 1.49 suggests the stock is reasonably priced for its growth.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bear Case : MCK
The primary concerns for MCK are Return on Equity, Profit Margin, Operating Margin. Thin 1.2% margins leave little buffer for downturns.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Debt/Equity.
Key Dynamics to Monitor
MCK carries more volatility with a beta of 0.32 — expect wider price swings.
MCK is growing revenue faster at 6.0% — sustainability is the question.
MCK generates stronger free cash flow (3.3B), providing more financial flexibility.
Monitor MEDICAL DISTRIBUTION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MCK scores higher overall (55/100 vs 50/100). 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.
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 →Merck & Company Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Merck & Co. is an American multinational pharmaceutical company headquartered in Kenilworth, New Jersey. It is named after the Merck family, which set up Merck Group in Germany in 1668.
Visit Website →Compare with Other MEDICAL DISTRIBUTION Stocks
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