Cardinal Health Inc (CAH)vsTenet Healthcare Corporation (THC)
CAH
Cardinal Health Inc
$183.65
-0.88%
HEALTHCARE · Cap: $43.39B
THC
Tenet Healthcare Corporation
$190.38
-1.93%
HEALTHCARE · Cap: $16.72B
Smart Verdict
WallStSmart Research — data-driven comparison
Cardinal Health Inc generates 1069% more annual revenue ($250.74B vs $21.45B). THC leads profitability with a 7.9% profit margin vs 0.6%. CAH appears more attractively valued with a PEG of 1.25. THC earns a higher WallStSmart Score of 66/100 (B-).
CAH
Hold47
out of 100
Grade: D+
THC
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+73.9%
Fair Value
$859.62
Current Price
$183.65
$675.97 discount
Margin of Safety
+78.8%
Fair Value
$1068.55
Current Price
$190.38
$878.17 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Generating 1.7B in free cash flow
Attractively priced relative to earnings
Every $100 of equity generates 30 in profit
Earnings expanding 87.6% YoY
Generating 1.5B 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%
2.8% revenue growth
Distress zone — elevated risk
7.9% margin — thin
Expensive relative to growth rate
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 1.25 suggests the stock is reasonably priced for its growth.
Bull Case : THC
The strongest argument for THC centers on P/E Ratio, Return on Equity, EPS 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 : THC
The primary concerns for THC are Revenue Growth, Altman Z-Score, Profit Margin.
Key Dynamics to Monitor
THC carries more volatility with a beta of 1.30 — expect wider price swings.
CAH is growing revenue faster at 11.0% — 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
THC scores higher overall (66/100 vs 47/100). CAH offers better value entry with a 73.9% margin of safety. Both earn "Strong 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 →Tenet Healthcare Corporation
HEALTHCARE · MEDICAL CARE FACILITIES · USA
Tenet Healthcare Corporation is a diversified health services company. The company is headquartered in Dallas, Texas.
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