McKesson Corporation (MCK)vsSeagate Technology PLC (STX)
MCK
McKesson Corporation
$775.66
+2.47%
HEALTHCARE · Cap: $91.29B
STX
Seagate Technology PLC
$925.99
+0.39%
TECHNOLOGY · Cap: $230.51B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 3564% more annual revenue ($403.43B vs $11.01B). STX leads profitability with a 21.6% profit margin vs 1.2%. STX appears more attractively valued with a PEG of 0.71. STX earns a higher WallStSmart Score of 77/100 (B+).
MCK
Buy53
out of 100
Grade: C-
STX
Strong Buy77
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-65.2%
Fair Value
$576.90
Current Price
$775.66
$198.76 premium
Intrinsic value data unavailable for STX.
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 217 in profit
Strong operational efficiency at 35.7%
Revenue surging 44.1% year-over-year
Earnings expanding 108.3% YoY
Keeps 22 of every $100 in revenue as profit
Areas to Watch
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
1.2% margin — thin
Operating margin of 2.2%
Premium valuation, high expectations priced in
Trading at 189.8x book value
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : MCK
The strongest argument for MCK centers on Debt/Equity, Altman Z-Score, Market Cap.
Bull Case : STX
The strongest argument for STX centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 21.6% and operating margin at 35.7%. Revenue growth of 44.1% demonstrates continued momentum.
Bear Case : MCK
The primary concerns for MCK are PEG Ratio, Return on Equity, Profit Margin. Thin 1.2% margins leave little buffer for downturns.
Bear Case : STX
The primary concerns for STX are P/E Ratio, Price/Book, Altman Z-Score. A P/E of 97.1x leaves little room for execution misses. Debt-to-equity of 3.82 is elevated, increasing financial risk.
Key Dynamics to Monitor
MCK profiles as a value stock while STX is a growth play — different risk/reward profiles.
STX carries more volatility with a beta of 2.08 — expect wider price swings.
STX is growing revenue faster at 44.1% — sustainability is the question.
MCK generates stronger free cash flow (3.3B), providing more financial flexibility.
Bottom Line
STX scores higher overall (77/100 vs 53/100), backed by strong 21.6% margins and 44.1% revenue growth. Both earn "Strong 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 →Seagate Technology PLC
TECHNOLOGY · COMPUTER HARDWARE · USA
Seagate Technology Holdings plc, an Irish public limited company (commonly referred to as Seagate) is an American data storage company.
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