McKesson Corporation (MCK)vsNovartis AG ADR (NVS)
MCK
McKesson Corporation
$763.51
+2.47%
HEALTHCARE · Cap: $89.39B
NVS
Novartis AG ADR
$155.41
+0.19%
HEALTHCARE · Cap: $296.54B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 613% more annual revenue ($403.43B vs $56.58B). NVS leads profitability with a 23.9% 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
NVS
Hold49
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
-69.7%
Fair Value
$91.58
Current Price
$155.41
$63.83 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
Every $100 of equity generates 35 in profit
Strong operational efficiency at 30.5%
Keeps 24 of every $100 in revenue as profit
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%
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
Revenue declined 0.7%
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 : NVS
The strongest argument for NVS centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 23.9% and operating margin at 30.5%.
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 : NVS
The primary concerns for NVS are Altman Z-Score, Debt/Equity, PEG Ratio.
Key Dynamics to Monitor
MCK profiles as a value stock while NVS is a declining play — different risk/reward profiles.
NVS carries more volatility with a beta of 0.49 — 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.
Bottom Line
MCK scores higher overall (55/100 vs 49/100). 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 →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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