American Express Company (AXP)vsMcKesson Corporation (MCK)
AXP
American Express Company
$300.24
-0.58%
FINANCIAL SERVICES · Cap: $208.03B
MCK
McKesson Corporation
$879.75
-0.25%
HEALTHCARE · Cap: $108.85B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 494% more annual revenue ($397.96B vs $66.97B). AXP leads profitability with a 16.2% profit margin vs 1.1%. MCK appears more attractively valued with a PEG of 1.07. AXP earns a higher WallStSmart Score of 66/100 (B-).
AXP
Strong Buy66
out of 100
Grade: B-
MCK
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+41.4%
Fair Value
$512.74
Current Price
$300.24
$212.50 discount
Margin of Safety
+41.2%
Fair Value
$1622.09
Current Price
$879.75
$742.34 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 34 in profit
Generating 2.3B in free cash flow
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
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Distress zone — elevated risk
Moderate valuation
ROE of 0.0% — below average capital efficiency
1.1% margin — thin
Operating margin of 1.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : AXP
The strongest argument for AXP centers on Market Cap, Return on Equity, Free Cash Flow. Profitability is solid with margins at 16.2% and operating margin at 17.5%. Revenue growth of 10.6% demonstrates continued momentum.
Bull 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.
Bear Case : AXP
The primary concerns for AXP are PEG Ratio, Debt/Equity, Altman Z-Score. Debt-to-equity of 1.73 is elevated, increasing financial risk.
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.
Key Dynamics to Monitor
AXP profiles as a mature stock while MCK is a value play — different risk/reward profiles.
AXP carries more volatility with a beta of 1.15 — expect wider price swings.
MCK is growing revenue faster at 11.4% — sustainability is the question.
AXP generates stronger free cash flow (2.3B), providing more financial flexibility.
Bottom Line
AXP scores higher overall (66/100 vs 57/100), backed by strong 16.2% margins and 10.6% 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.
American Express Company
FINANCIAL SERVICES · CREDIT SERVICES · USA
The American Express Company is a multinational financial services corporation headquartered at 200 Vesey Street in the Battery Park City neighborhood of Lower Manhattan in New York City.
Visit Website →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 →Compare with Other CREDIT SERVICES Stocks
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