Bank of Montreal (BMO)vsMcKesson Corporation (MCK)
BMO
Bank of Montreal
$136.39
-0.53%
FINANCIAL SERVICES · Cap: $94.86B
MCK
McKesson Corporation
$879.75
-0.25%
HEALTHCARE · Cap: $108.85B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 1089% more annual revenue ($397.96B vs $33.48B). BMO leads profitability with a 27.1% profit margin vs 1.1%. MCK appears more attractively valued with a PEG of 1.07. BMO earns a higher WallStSmart Score of 75/100 (B+).
BMO
Strong Buy75
out of 100
Grade: B+
MCK
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+57.3%
Fair Value
$336.32
Current Price
$136.39
$199.93 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
Strong operational efficiency at 39.9%
Large-cap with strong market position
Keeps 27 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Generating 7.0B 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
No major concerns identified
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 : BMO
The strongest argument for BMO centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 27.1% and operating margin at 39.9%. PEG of 1.46 suggests the stock is reasonably priced for its growth.
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 : BMO
No major red flags identified for BMO, but monitor valuation.
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
BMO profiles as a mature stock while MCK is a value play — different risk/reward profiles.
BMO carries more volatility with a beta of 1.16 — expect wider price swings.
MCK is growing revenue faster at 11.4% — sustainability is the question.
BMO generates stronger free cash flow (7.0B), providing more financial flexibility.
Bottom Line
BMO scores higher overall (75/100 vs 57/100), backed by strong 27.1% margins. 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.
Bank of Montreal
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Bank of Montreal offers diversified financial services primarily in North America. The company is headquartered in Montreal, Canada.
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.
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