McKesson Corporation (MCK)vsSAP SE ADR (SAP)
MCK
McKesson Corporation
$736.09
-2.47%
HEALTHCARE · Cap: $92.45B
SAP
SAP SE ADR
$173.70
-0.58%
TECHNOLOGY · Cap: $204.11B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 966% more annual revenue ($397.96B vs $37.34B). SAP leads profitability with a 19.6% profit margin vs 1.1%. SAP appears more attractively valued with a PEG of 0.73. SAP earns a higher WallStSmart Score of 62/100 (C+).
MCK
Buy62
out of 100
Grade: C+
SAP
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+63.8%
Fair Value
$2633.47
Current Price
$736.09
$1897.38 discount
Margin of Safety
-16.9%
Fair Value
$168.01
Current Price
$173.70
$5.69 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Large-cap with strong market position
Growing faster than its price suggests
Earnings expanding 38.0% YoY
Generating 3.4B in free cash flow
Mega-cap, among the largest globally
Strong operational efficiency at 30.0%
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Growing faster than its price suggests
Generating 3.3B in free cash flow
Areas to Watch
ROE of 0.0% — below average capital efficiency
1.1% margin — thin
Operating margin of 1.6%
No major concerns identified
Comparative Analysis Report
WallStSmart ResearchBull Case : MCK
The strongest argument for MCK centers on Debt/Equity, Market Cap, PEG Ratio. Revenue growth of 11.4% demonstrates continued momentum. PEG of 0.90 suggests the stock is reasonably priced for its growth.
Bull Case : SAP
The strongest argument for SAP centers on Market Cap, Operating Margin, Altman Z-Score. Profitability is solid with margins at 19.6% and operating margin at 30.0%. PEG of 0.73 suggests the stock is reasonably priced for its growth.
Bear Case : MCK
The primary concerns for MCK are Return on Equity, Profit Margin, Operating Margin. Thin 1.1% margins leave little buffer for downturns.
Bear Case : SAP
No major red flags identified for SAP, but monitor valuation.
Key Dynamics to Monitor
MCK profiles as a value stock while SAP is a mature play — different risk/reward profiles.
SAP carries more volatility with a beta of 0.71 — expect wider price swings.
MCK is growing revenue faster at 11.4% — sustainability is the question.
MCK generates stronger free cash flow (3.4B), providing more financial flexibility.
Bottom Line
MCK scores higher overall (62/100 vs 62/100) and 11.4% revenue growth. 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 →SAP SE ADR
TECHNOLOGY · SOFTWARE - APPLICATION · USA
SAP SE is a global enterprise application software company. The company is headquartered in Walldorf, Germany.
Visit Website →Compare with Other MEDICAL DISTRIBUTION Stocks
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