McKesson Corporation (MCK)vsTenet Healthcare Corporation (THC)
MCK
McKesson Corporation
$736.09
-2.47%
HEALTHCARE · Cap: $92.45B
THC
Tenet Healthcare Corporation
$190.38
-1.93%
HEALTHCARE · Cap: $16.72B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 1755% more annual revenue ($397.96B vs $21.45B). THC leads profitability with a 7.9% profit margin vs 1.1%. MCK appears more attractively valued with a PEG of 0.90. THC earns a higher WallStSmart Score of 66/100 (B-).
MCK
Buy62
out of 100
Grade: C+
THC
Strong Buy66
out of 100
Grade: B-
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
+78.8%
Fair Value
$1068.55
Current Price
$190.38
$878.17 discount
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
Attractively priced relative to earnings
Every $100 of equity generates 30 in profit
Earnings expanding 87.6% YoY
Generating 1.5B in free cash flow
Areas to Watch
ROE of 0.0% — below average capital efficiency
1.1% margin — thin
Operating margin of 1.6%
2.8% revenue growth
Distress zone — elevated risk
7.9% margin — thin
Expensive relative to growth rate
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 : THC
The strongest argument for THC centers on P/E Ratio, Return on Equity, EPS 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 : THC
The primary concerns for THC are Revenue Growth, Altman Z-Score, Profit Margin.
Key Dynamics to Monitor
THC carries more volatility with a beta of 1.30 — 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.
Monitor MEDICAL DISTRIBUTION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
THC scores higher overall (66/100 vs 62/100). MCK offers better value entry with a 63.8% 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 →Tenet Healthcare Corporation
HEALTHCARE · MEDICAL CARE FACILITIES · USA
Tenet Healthcare Corporation is a diversified health services company. The company is headquartered in Dallas, Texas.
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