WallStSmart

Cardinal Health Inc (CAH)vsMcKesson Corporation (MCK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

McKesson Corporation generates 63% more annual revenue ($397.96B vs $244.67B). MCK leads profitability with a 109.0% profit margin vs 68.0%. MCK appears more attractively valued with a PEG of 1.08. MCK earns a higher WallStSmart Score of 57/100 (C).

CAH

Buy

53

out of 100

Grade: C-

Growth: 7.3Profit: 7.5Value: 8.7Quality: 5.8
Piotroski: 4/9Altman Z: 4.30

MCK

Buy

57

out of 100

Grade: C

Growth: 8.0Profit: 6.0Value: 10.0Quality: 7.0
Piotroski: 4/9Altman Z: 5.22
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CAHUndervalued (+13.6%)

Margin of Safety

+13.6%

Fair Value

$259.58

Current Price

$207.83

$51.75 discount

UndervaluedFair: $259.58Overvalued
MCKUndervalued (+41.2%)

Margin of Safety

+41.2%

Fair Value

$1621.15

Current Price

$885.84

$735.31 discount

UndervaluedFair: $1621.15Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CAH4 strengths · Avg: 9.5/10
Profit MarginProfitability
68.0%10/10

Keeps 68 of every $100 in revenue as profit

Operating MarginProfitability
123.0%10/10

Strong operational efficiency at 123.0%

Altman Z-ScoreHealth
4.3010/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
18.8%8/10

18.8% revenue growth

MCK6 strengths · Avg: 9.2/10
Profit MarginProfitability
109.0%10/10

Keeps 109 of every $100 in revenue as profit

Debt/EquityHealth
-6.6410/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
5.2210/10

Safe zone — low bankruptcy risk

Market CapQuality
$109.34B9/10

Large-cap with strong market position

EPS GrowthGrowth
38.0%8/10

Earnings expanding 38.0% YoY

Free Cash FlowQuality
$1.12B8/10

Generating 1.1B in free cash flow

Areas to Watch

CAH2 concerns · Avg: 3.5/10
P/E RatioValuation
30.3x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

MCK3 concerns · Avg: 3.3/10
P/E RatioValuation
25.6x4/10

Moderate valuation

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Operating MarginProfitability
1.6%3/10

Operating margin of 1.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : CAH

The strongest argument for CAH centers on Profit Margin, Operating Margin, Altman Z-Score. Profitability is solid with margins at 68.0% and operating margin at 123.0%. Revenue growth of 18.8% demonstrates continued momentum.

Bull Case : MCK

The strongest argument for MCK centers on Profit Margin, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 109.0% and operating margin at 1.6%. Revenue growth of 11.4% demonstrates continued momentum.

Bear Case : CAH

The primary concerns for CAH are P/E Ratio, Return on Equity.

Bear Case : MCK

The primary concerns for MCK are P/E Ratio, Return on Equity, Operating Margin.

Key Dynamics to Monitor

CAH profiles as a growth stock while MCK is a mature play — different risk/reward profiles.

CAH carries more volatility with a beta of 0.62 — expect wider price swings.

CAH is growing revenue faster at 18.8% — sustainability is the question.

MCK generates stronger free cash flow (1.1B), providing more financial flexibility.

Bottom Line

MCK scores higher overall (57/100 vs 53/100), backed by strong 109.0% margins 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.

Cardinal Health Inc

HEALTHCARE · MEDICAL DISTRIBUTION · USA

Cardinal Health, Inc. is an American multinational health care services company.

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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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