WallStSmart

McKesson Corporation (MCK)vsPure Storage Inc (PSTG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

McKesson Corporation generates 10765% more annual revenue ($397.96B vs $3.66B). MCK leads profitability with a 109.0% profit margin vs 5.1%. MCK appears more attractively valued with a PEG of 1.08. PSTG earns a higher WallStSmart Score of 59/100 (C).

MCK

Buy

57

out of 100

Grade: C

Growth: 8.0Profit: 6.0Value: 10.0Quality: 7.0
Piotroski: 4/9Altman Z: 5.22

PSTG

Buy

59

out of 100

Grade: C

Growth: 8.0Profit: 5.0Value: 4.7Quality: 5.3
Piotroski: 4/9Altman Z: 1.22
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MCKUndervalued (+41.2%)

Margin of Safety

+41.2%

Fair Value

$1621.15

Current Price

$885.84

$735.31 discount

UndervaluedFair: $1621.15Overvalued
PSTGSignificantly Overvalued (-195.4%)

Margin of Safety

-195.4%

Fair Value

$25.74

Current Price

$62.63

$36.89 premium

UndervaluedFair: $25.74Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MCK6 strengths · Avg: 9.2/10
Profit MarginProfitability
109.0%10/10

Keeps 109 of every $100 in revenue as profit

Debt/EquityHealth
-6.6410/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
5.2210/10

Safe zone — low bankruptcy risk

Market CapQuality
$109.34B9/10

Large-cap with strong market position

EPS GrowthGrowth
38.0%8/10

Earnings expanding 38.0% YoY

Free Cash FlowQuality
$1.12B8/10

Generating 1.1B in free cash flow

PSTG2 strengths · Avg: 9.0/10
EPS GrowthGrowth
140.6%10/10

Earnings expanding 140.6% YoY

Revenue GrowthGrowth
20.4%8/10

Revenue surging 20.4% year-over-year

Areas to Watch

MCK3 concerns · Avg: 3.3/10
P/E RatioValuation
25.6x4/10

Moderate valuation

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Operating MarginProfitability
1.6%3/10

Operating margin of 1.6%

PSTG4 concerns · Avg: 2.8/10
Price/BookValuation
14.3x4/10

Trading at 14.3x book value

Profit MarginProfitability
5.1%3/10

5.1% margin — thin

P/E RatioValuation
113.9x2/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.222/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : MCK

The strongest argument for MCK centers on Profit Margin, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 109.0% and operating margin at 1.6%. Revenue growth of 11.4% demonstrates continued momentum.

Bull Case : PSTG

The strongest argument for PSTG centers on EPS Growth, Revenue Growth. Revenue growth of 20.4% demonstrates continued momentum. PEG of 1.47 suggests the stock is reasonably priced for its growth.

Bear Case : MCK

The primary concerns for MCK are P/E Ratio, Return on Equity, Operating Margin.

Bear Case : PSTG

The primary concerns for PSTG are Price/Book, Profit Margin, P/E Ratio. A P/E of 113.9x leaves little room for execution misses.

Key Dynamics to Monitor

MCK profiles as a mature stock while PSTG is a growth play — different risk/reward profiles.

PSTG carries more volatility with a beta of 1.33 — expect wider price swings.

PSTG is growing revenue faster at 20.4% — sustainability is the question.

MCK generates stronger free cash flow (1.1B), providing more financial flexibility.

Bottom Line

PSTG scores higher overall (59/100 vs 57/100) and 20.4% revenue growth. 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.

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Pure Storage Inc

TECHNOLOGY · COMPUTER HARDWARE · USA

Pure Storage, Inc. provides data storage technology and solutions in the United States and internationally. The company is headquartered in Mountain View, California.

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