WallStSmart

McKesson Corporation (MCK)vsQnity Electronics, Inc (Q)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

McKesson Corporation generates 8271% more annual revenue ($397.96B vs $4.75B). Q leads profitability with a 14.6% profit margin vs 1.1%. MCK appears more attractively valued with a PEG of 1.07. MCK earns a higher WallStSmart Score of 57/100 (C).

MCK

Buy

57

out of 100

Grade: C

Growth: 8.0Profit: 4.5Value: 10.0Quality: 7.0
Piotroski: 4/9Altman Z: 5.22

Q

Hold

49

out of 100

Grade: D+

Growth: 3.3Profit: 6.0Value: 7.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MCKUndervalued (+41.2%)

Margin of Safety

+41.2%

Fair Value

$1622.09

Current Price

$879.75

$742.34 discount

UndervaluedFair: $1622.09Overvalued
QSignificantly Overvalued (-410.3%)

Margin of Safety

-410.3%

Fair Value

$22.44

Current Price

$120.26

$97.82 premium

UndervaluedFair: $22.44Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MCK5 strengths · Avg: 9.0/10
Debt/EquityHealth
-6.6410/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
5.2210/10

Safe zone — low bankruptcy risk

Market CapQuality
$108.85B9/10

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

Q1 strengths · Avg: 8.0/10
Operating MarginProfitability
20.4%8/10

Strong operational efficiency at 20.4%

Areas to Watch

MCK4 concerns · Avg: 3.3/10
P/E RatioValuation
25.4x4/10

Moderate valuation

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
1.1%3/10

1.1% margin — thin

Operating MarginProfitability
1.6%3/10

Operating margin of 1.6%

Q4 concerns · Avg: 3.3/10
PEG RatioValuation
2.414/10

Expensive relative to growth rate

P/E RatioValuation
35.9x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
8.0%3/10

ROE of 8.0% — below average capital efficiency

EPS GrowthGrowth
-52.8%2/10

Earnings declined 52.8%

Comparative Analysis Report

WallStSmart Research

Bull 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 : Q

The strongest argument for Q centers on Operating Margin.

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 : Q

The primary concerns for Q are PEG Ratio, P/E Ratio, Return on Equity.

Key Dynamics to Monitor

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

MCK scores higher overall (57/100 vs 49/100) and 11.4% revenue growth. 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.

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Qnity Electronics, Inc

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA

IQVIA Holdings Inc. provides integrated information and technology-enabled healthcare services in the Americas, Europe, Africa, and Asia-Pacific. The company is headquartered in Durham, North Carolina.

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