Berkshire Hathaway Inc (BRK-B)vsMcKesson Corporation (MCK)
BRK-B
Berkshire Hathaway Inc
$479.33
-0.14%
FINANCIAL SERVICES · Cap: $1.04T
MCK
McKesson Corporation
$879.75
-0.25%
HEALTHCARE · Cap: $108.85B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 7% more annual revenue ($397.96B vs $371.44B). BRK-B leads profitability with a 18.0% profit margin vs 1.1%. MCK appears more attractively valued with a PEG of 1.07. MCK earns a higher WallStSmart Score of 57/100 (C).
BRK-B
Buy54
out of 100
Grade: C-
MCK
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-134.4%
Fair Value
$210.94
Current Price
$479.33
$268.39 premium
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
Reasonable price relative to book value
Strong operational efficiency at 33.0%
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Generating 5.0B 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
Expensive relative to growth rate
Revenue declined 0.7%
Earnings declined 2.5%
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 : BRK-B
The strongest argument for BRK-B centers on Market Cap, Price/Book, Operating Margin. Profitability is solid with margins at 18.0% and operating margin at 33.0%.
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 : BRK-B
The primary concerns for BRK-B are PEG Ratio, Revenue Growth, EPS 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.
Key Dynamics to Monitor
BRK-B profiles as a declining stock while MCK is a value play — different risk/reward profiles.
BRK-B carries more volatility with a beta of 0.69 — expect wider price swings.
MCK is growing revenue faster at 11.4% — sustainability is the question.
BRK-B generates stronger free cash flow (5.0B), providing more financial flexibility.
Bottom Line
MCK scores higher overall (57/100 vs 54/100) and 11.4% revenue growth. Both earn "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.
Berkshire Hathaway Inc
FINANCIAL SERVICES · INSURANCE - DIVERSIFIED · USA
Berkshire Hathaway Inc. is an American multinational conglomerate holding company headquartered in Omaha, Nebraska, United States. The company wholly owns GEICO, Duracell, Dairy Queen, BNSF, Lubrizol, Fruit of the Loom, Helzberg Diamonds, Long & Foster, FlightSafety International, Pampered Chef, Forest River, and NetJets, and also owns 38.6% of Pilot Flying J; and significant minority holdings in public companies Kraft Heinz Company (26.7%), American Express (18.8%), The Coca-Cola Company (9.32%), Bank of America (11.9%), and Apple (6.3%).
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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