McKesson Corporation (MCK)vsTE Connectivity Ltd (TEL)
MCK
McKesson Corporation
$879.75
-0.25%
HEALTHCARE · Cap: $108.85B
TEL
TE Connectivity Ltd
$206.37
+2.78%
TECHNOLOGY · Cap: $60.58B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 2099% more annual revenue ($397.96B vs $18.09B). TEL leads profitability with a 11.4% profit margin vs 1.1%. MCK appears more attractively valued with a PEG of 1.07. TEL earns a higher WallStSmart Score of 74/100 (B).
MCK
Buy57
out of 100
Grade: C
TEL
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+41.2%
Fair Value
$1622.09
Current Price
$879.75
$742.34 discount
Margin of Safety
+29.8%
Fair Value
$325.26
Current Price
$206.37
$118.89 discount
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 38.0% YoY
Generating 1.1B in free cash flow
Large-cap with strong market position
Strong operational efficiency at 20.9%
Revenue surging 21.7% year-over-year
Earnings expanding 44.4% YoY
Areas to Watch
Moderate valuation
ROE of 0.0% — below average capital efficiency
1.1% margin — thin
Operating margin of 1.6%
Moderate valuation
Comparative Analysis Report
WallStSmart ResearchBull 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 : TEL
The strongest argument for TEL centers on Market Cap, Operating Margin, Revenue Growth. Revenue growth of 21.7% demonstrates continued momentum. PEG of 1.14 suggests the stock is reasonably priced for its growth.
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 : TEL
The primary concerns for TEL are P/E Ratio.
Key Dynamics to Monitor
MCK profiles as a value stock while TEL is a growth play — different risk/reward profiles.
TEL carries more volatility with a beta of 1.25 — expect wider price swings.
TEL is growing revenue faster at 21.7% — sustainability is the question.
MCK generates stronger free cash flow (1.1B), providing more financial flexibility.
Bottom Line
TEL scores higher overall (74/100 vs 57/100) and 21.7% 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 →TE Connectivity Ltd
TECHNOLOGY · ELECTRONIC COMPONENTS · USA
TE Connectivity is an American Swiss-domiciled technology company that designs and manufactures connectors and sensors for several industries, such as automotive, industrial equipment, data communication systems, aerospace, defense, medical, oil and gas, consumer electronics and energy.
Compare with Other MEDICAL DISTRIBUTION Stocks
Want to dig deeper into these stocks?