McKesson Corporation (MCK)vsNovartis AG ADR (NVS)
MCK
McKesson Corporation
$881.51
+0.07%
HEALTHCARE · Cap: $102.78B
NVS
Novartis AG ADR
$137.16
-0.23%
HEALTHCARE · Cap: $260.70B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 625% more annual revenue ($410.98B vs $56.69B). NVS leads profitability with a 22.5% profit margin vs 1.1%. MCK appears more attractively valued with a PEG of 1.66. NVS earns a higher WallStSmart Score of 51/100 (C-).
MCK
Hold43
out of 100
Grade: D
NVS
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-60.4%
Fair Value
$594.29
Current Price
$881.51
$287.22 premium
Margin of Safety
-47.0%
Fair Value
$93.29
Current Price
$137.16
$43.87 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
Mega-cap, among the largest globally
Every $100 of equity generates 31 in profit
Strong operational efficiency at 34.6%
Keeps 23 of every $100 in revenue as profit
Generating 5.6B in free cash flow
Areas to Watch
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
1.1% margin — thin
Operating margin of 1.4%
0.8% revenue growth
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : MCK
The strongest argument for MCK centers on Debt/Equity, Altman Z-Score, Market Cap.
Bull Case : NVS
The strongest argument for NVS centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 22.5% and operating margin at 34.6%.
Bear Case : MCK
The primary concerns for MCK are PEG Ratio, Return on Equity, Profit Margin. Thin 1.1% margins leave little buffer for downturns.
Bear Case : NVS
The primary concerns for NVS are Revenue Growth, Altman Z-Score, Debt/Equity.
Key Dynamics to Monitor
NVS carries more volatility with a beta of 0.49 — expect wider price swings.
MCK is growing revenue faster at 7.7% — sustainability is the question.
NVS generates stronger free cash flow (5.6B), providing more financial flexibility.
Monitor MEDICAL DISTRIBUTION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
NVS scores higher overall (51/100 vs 43/100), backed by strong 22.5% 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.
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 →Novartis AG ADR
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Novartis AG researches, develops, manufactures and markets medical devices worldwide. The company is headquartered in Basel, Switzerland.
Visit Website →Compare with Other MEDICAL DISTRIBUTION Stocks
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