Caterpillar Inc (CAT)vsMcKesson Corporation (MCK)
CAT
Caterpillar Inc
$716.63
+0.34%
INDUSTRIALS · Cap: $318.64B
MCK
McKesson Corporation
$881.94
+0.56%
HEALTHCARE · Cap: $109.34B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 489% more annual revenue ($397.96B vs $67.59B). MCK leads profitability with a 109.0% profit margin vs 13.1%. MCK appears more attractively valued with a PEG of 1.08. MCK earns a higher WallStSmart Score of 57/100 (C).
CAT
Buy57
out of 100
Grade: C
MCK
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-460.9%
Fair Value
$127.77
Current Price
$716.63
$588.86 premium
Margin of Safety
+41.2%
Fair Value
$1621.15
Current Price
$881.94
$739.21 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 44 in profit
18.0% revenue growth
Generating 2.2B in free cash flow
Keeps 109 of every $100 in revenue as profit
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
Premium valuation, high expectations priced in
Trading at 15.6x book value
Weak financial health signals
Moderate valuation
ROE of 0.0% — below average capital efficiency
Operating margin of 1.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : CAT
The strongest argument for CAT centers on Market Cap, Return on Equity, Revenue Growth. Revenue growth of 18.0% 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 : CAT
The primary concerns for CAT are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 2.03 is elevated, increasing financial risk.
Bear Case : MCK
The primary concerns for MCK are P/E Ratio, Return on Equity, Operating Margin.
Key Dynamics to Monitor
CAT profiles as a growth stock while MCK is a mature play — different risk/reward profiles.
CAT carries more volatility with a beta of 1.53 — expect wider price swings.
CAT is growing revenue faster at 18.0% — sustainability is the question.
CAT generates stronger free cash flow (2.2B), providing more financial flexibility.
Bottom Line
CAT scores higher overall (57/100 vs 57/100) and 18.0% revenue growth. MCK offers better value entry with a 41.2% margin of safety. 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.
Caterpillar Inc
INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA
Caterpillar Inc. (often shortened to CAT) is an American Fortune 100 corporation that designs, develops, engineers, manufactures, markets, and sells machinery, engines, financial products, and insurance to customers via a worldwide dealer network.
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 FARM & HEAVY CONSTRUCTION MACHINERY Stocks
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