McKesson Corporation (MCK)vsSeagate Technology PLC (STX)
MCK
McKesson Corporation
$885.84
-1.46%
HEALTHCARE · Cap: $109.34B
STX
Seagate Technology PLC
$411.23
-5.38%
TECHNOLOGY · Cap: $97.36B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 3857% more annual revenue ($397.96B vs $10.06B). MCK leads profitability with a 109.0% profit margin vs 19.6%. STX appears more attractively valued with a PEG of 0.67. STX earns a higher WallStSmart Score of 72/100 (B).
MCK
Buy57
out of 100
Grade: C
STX
Strong Buy72
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+41.2%
Fair Value
$1621.15
Current Price
$885.84
$735.31 discount
Margin of Safety
+1.9%
Fair Value
$415.12
Current Price
$411.23
$3.89 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 109 of every $100 in revenue as profit
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
Earnings expanding 67.7% YoY
Large-cap with strong market position
Every $100 of equity generates 22 in profit
Growing faster than its price suggests
Strong operational efficiency at 29.9%
Revenue surging 21.5% year-over-year
Areas to Watch
Moderate valuation
ROE of 0.0% — below average capital efficiency
Operating margin of 1.6%
Premium valuation, high expectations priced in
Trading at 195.8x book value
Comparative Analysis Report
WallStSmart ResearchBull 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 : STX
The strongest argument for STX centers on EPS Growth, Market Cap, Return on Equity. Profitability is solid with margins at 19.6% and operating margin at 29.9%. Revenue growth of 21.5% demonstrates continued momentum.
Bear Case : MCK
The primary concerns for MCK are P/E Ratio, Return on Equity, Operating Margin.
Bear Case : STX
The primary concerns for STX are P/E Ratio, Price/Book. A P/E of 49.0x leaves little room for execution misses.
Key Dynamics to Monitor
MCK profiles as a mature stock while STX is a growth play — different risk/reward profiles.
STX carries more volatility with a beta of 1.65 — expect wider price swings.
STX is growing revenue faster at 21.5% — sustainability is the question.
MCK generates stronger free cash flow (1.1B), providing more financial flexibility.
Bottom Line
STX scores higher overall (72/100 vs 57/100), backed by strong 19.6% margins and 21.5% revenue growth. MCK offers better value entry with a 41.2% margin of safety. 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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