McKesson Corporation (MCK)vsNorthrop Grumman Corporation (NOC)
MCK
McKesson Corporation
$736.09
-2.47%
HEALTHCARE · Cap: $92.45B
NOC
Northrop Grumman Corporation
$549.52
-0.50%
INDUSTRIALS · Cap: $78.44B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 839% more annual revenue ($397.96B vs $42.37B). NOC leads profitability with a 10.8% profit margin vs 1.1%. MCK appears more attractively valued with a PEG of 0.90. NOC earns a higher WallStSmart Score of 63/100 (C+).
MCK
Buy62
out of 100
Grade: C+
NOC
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+63.8%
Fair Value
$2633.47
Current Price
$736.09
$1897.38 discount
Margin of Safety
-60.9%
Fair Value
$421.87
Current Price
$549.52
$127.65 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Large-cap with strong market position
Growing faster than its price suggests
Earnings expanding 38.0% YoY
Generating 3.4B in free cash flow
Earnings expanding 84.9% YoY
Large-cap with strong market position
Every $100 of equity generates 29 in profit
Attractively priced relative to earnings
Areas to Watch
ROE of 0.0% — below average capital efficiency
1.1% margin — thin
Operating margin of 1.6%
4.4% revenue growth
Grey zone — moderate risk
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : NOC
The strongest argument for NOC centers on EPS Growth, Market Cap, Return on Equity.
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.
Bear Case : NOC
The primary concerns for NOC are Revenue Growth, Altman Z-Score, Debt/Equity.
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 MEDICAL DISTRIBUTION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
NOC scores higher overall (63/100 vs 62/100). MCK offers better value entry with a 63.8% margin of safety. 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 →Northrop Grumman Corporation
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Northrop Grumman Corporation (NYSE: NOC) is an American multinational aerospace and defense technology company.
Visit Website →Compare with Other MEDICAL DISTRIBUTION Stocks
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