Energy Transfer LP (ET)vsMcKesson Corporation (MCK)
ET
Energy Transfer LP
$19.34
-2.91%
ENERGY · Cap: $68.55B
MCK
McKesson Corporation
$736.09
-2.47%
HEALTHCARE · Cap: $92.45B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 331% more annual revenue ($397.96B vs $92.29B). ET leads profitability with a 4.7% profit margin vs 1.1%. ET appears more attractively valued with a PEG of 0.73. MCK earns a higher WallStSmart Score of 62/100 (C+).
ET
Buy62
out of 100
Grade: C+
MCK
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+87.8%
Fair Value
$148.63
Current Price
$19.34
$129.29 discount
Margin of Safety
+63.8%
Fair Value
$2633.47
Current Price
$736.09
$1897.38 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 32.1% year-over-year
Large-cap with strong market position
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Conservative balance sheet, low leverage
Large-cap with strong market position
Growing faster than its price suggests
Earnings expanding 38.0% YoY
Generating 3.4B in free cash flow
Areas to Watch
4.7% margin — thin
Earnings declined 3.6%
Negative free cash flow — burning cash
ROE of 0.0% — below average capital efficiency
1.1% margin — thin
Operating margin of 1.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : ET
The strongest argument for ET centers on Revenue Growth, Market Cap, PEG Ratio. Revenue growth of 32.1% demonstrates continued momentum. PEG of 0.73 suggests the stock is reasonably priced for its growth.
Bull Case : MCK
The strongest argument for MCK centers on Debt/Equity, Market Cap, PEG Ratio. Revenue growth of 11.4% demonstrates continued momentum. PEG of 0.90 suggests the stock is reasonably priced for its growth.
Bear Case : ET
The primary concerns for ET are Profit Margin, EPS Growth, Free Cash Flow. Thin 4.7% 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
ET profiles as a hypergrowth stock while MCK is a value play — different risk/reward profiles.
ET carries more volatility with a beta of 0.57 — expect wider price swings.
ET is growing revenue faster at 32.1% — sustainability is the question.
MCK generates stronger free cash flow (3.4B), providing more financial flexibility.
Bottom Line
ET scores higher overall (62/100 vs 62/100) and 32.1% revenue growth. MCK offers better value entry with a 63.8% 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.
Energy Transfer LP
ENERGY · OIL & GAS MIDSTREAM · USA
Energy Transfer LP offers energy related services. The company is headquartered in Dallas, Texas.
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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