Cardinal Health Inc (CAH)vsMcKesson Corporation (MCK)
CAH
Cardinal Health Inc
$196.98
-0.04%
HEALTHCARE · Cap: $45.94B
MCK
McKesson Corporation
$807.85
-0.76%
HEALTHCARE · Cap: $99.71B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 59% more annual revenue ($397.96B vs $250.74B). MCK leads profitability with a 1.1% profit margin vs 0.6%. MCK appears more attractively valued with a PEG of 0.99. MCK earns a higher WallStSmart Score of 62/100 (C+).
CAH
Hold47
out of 100
Grade: D+
MCK
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+73.8%
Fair Value
$855.66
Current Price
$196.97
$658.68 discount
Margin of Safety
+63.8%
Fair Value
$2632.66
Current Price
$807.85
$1824.81 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Generating 1.7B in free cash flow
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Growing faster than its price suggests
Earnings expanding 38.0% YoY
Generating 1.1B in free cash flow
Areas to Watch
Moderate valuation
ROE of 0.0% — below average capital efficiency
0.6% margin — thin
Operating margin of 1.4%
ROE of 0.0% — below average capital efficiency
1.1% margin — thin
Operating margin of 1.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : CAH
The strongest argument for CAH centers on Altman Z-Score, Free Cash Flow. Revenue growth of 11.0% demonstrates continued momentum. PEG of 1.26 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 0.99 suggests the stock is reasonably priced for its growth.
Bear Case : CAH
The primary concerns for CAH are P/E Ratio, Return on Equity, Profit Margin. Thin 0.6% margins leave little buffer for downturns.
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.
Key Dynamics to Monitor
CAH carries more volatility with a beta of 0.65 — expect wider price swings.
MCK is growing revenue faster at 11.4% — sustainability is the question.
CAH generates stronger free cash flow (1.7B), providing more financial flexibility.
Monitor MEDICAL DISTRIBUTION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MCK scores higher overall (62/100 vs 47/100) and 11.4% revenue growth. CAH offers better value entry with a 73.8% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Cardinal Health Inc
HEALTHCARE · MEDICAL DISTRIBUTION · USA
Cardinal Health, Inc. is an American multinational health care services company.
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 MEDICAL DISTRIBUTION Stocks
Want to dig deeper into these stocks?