McKesson Corporation (MCK)vsOtter Tail Corporation (OTTR)
MCK
McKesson Corporation
$879.75
-0.25%
HEALTHCARE · Cap: $108.85B
OTTR
Otter Tail Corporation
$86.55
-0.62%
INDUSTRIALS · Cap: $3.65B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 30417% more annual revenue ($397.96B vs $1.30B). OTTR leads profitability with a 21.2% profit margin vs 1.1%. MCK appears more attractively valued with a PEG of 1.07. OTTR earns a higher WallStSmart Score of 63/100 (C+).
MCK
Buy57
out of 100
Grade: C
OTTR
Buy63
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
-92.9%
Fair Value
$44.54
Current Price
$86.55
$42.01 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
Keeps 21 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 22.2%
Areas to Watch
Moderate valuation
ROE of 0.0% — below average capital efficiency
1.1% margin — thin
Operating margin of 1.6%
Expensive relative to growth rate
1.6% revenue growth
Distress zone — elevated risk
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. Revenue growth of 11.4% demonstrates continued momentum. PEG of 1.07 suggests the stock is reasonably priced for its growth.
Bull Case : OTTR
The strongest argument for OTTR centers on Profit Margin, P/E Ratio, Price/Book. Profitability is solid with margins at 21.2% and operating margin at 22.2%.
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 : OTTR
The primary concerns for OTTR are PEG Ratio, Revenue Growth, Altman Z-Score.
Key Dynamics to Monitor
OTTR carries more volatility with a beta of 0.52 — expect wider price swings.
MCK is growing revenue faster at 11.4% — sustainability is the question.
MCK generates stronger free cash flow (1.1B), providing more financial flexibility.
Monitor MEDICAL DISTRIBUTION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
OTTR scores higher overall (63/100 vs 57/100), backed by strong 21.2% margins. MCK offers better value entry with a 41.2% 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 →Otter Tail Corporation
INDUSTRIALS · CONGLOMERATES · USA
Otter Tail Corporation is engaged in electrical service, manufacturing and plastic piping businesses in the United States. The company is headquartered in Fergus Falls, Minnesota.
Compare with Other MEDICAL DISTRIBUTION Stocks
Want to dig deeper into these stocks?