Dollar Tree Inc (DLTR)vsMcKesson Corporation (MCK)
DLTR
Dollar Tree Inc
$106.64
+0.10%
CONSUMER DEFENSIVE · Cap: $21.18B
MCK
McKesson Corporation
$879.75
-0.25%
HEALTHCARE · Cap: $108.85B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 1950% more annual revenue ($397.96B vs $19.41B). DLTR leads profitability with a 6.6% profit margin vs 1.1%. MCK appears more attractively valued with a PEG of 1.07. DLTR earns a higher WallStSmart Score of 63/100 (C+).
DLTR
Buy63
out of 100
Grade: C+
MCK
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+11.4%
Fair Value
$141.13
Current Price
$106.64
$34.49 discount
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
Every $100 of equity generates 32 in profit
Attractively priced relative to earnings
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
Grey zone — moderate risk
6.6% margin — thin
Elevated debt levels
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 : DLTR
The strongest argument for DLTR centers on Return on Equity, P/E Ratio. PEG of 1.12 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 1.07 suggests the stock is reasonably priced for its growth.
Bear Case : DLTR
The primary concerns for DLTR are Altman Z-Score, Profit Margin, Debt/Equity. Debt-to-equity of 1.51 is elevated, increasing financial risk.
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
DLTR 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.
MCK generates stronger free cash flow (1.1B), providing more financial flexibility.
Monitor DISCOUNT STORES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DLTR scores higher overall (63/100 vs 57/100). 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.
Dollar Tree Inc
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
Dollar Tree is an American chain of discount variety stores that sells items for $1 or less, headquartered in Chesapeake, Virginia.
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 DISCOUNT STORES Stocks
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