WallStSmart

Henry Schein Inc (HSIC)vsMcKesson Corporation (MCK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

McKesson Corporation generates 2918% more annual revenue ($397.96B vs $13.18B). MCK leads profitability with a 109.0% profit margin vs 3.0%. MCK appears more attractively valued with a PEG of 1.08. MCK earns a higher WallStSmart Score of 57/100 (C).

HSIC

Buy

56

out of 100

Grade: C

Growth: 7.3Profit: 5.5Value: 8.7Quality: 7.0
Piotroski: 5/9Altman Z: 2.71

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

HSICUndervalued (+12.5%)

Margin of Safety

+12.5%

Fair Value

$93.39

Current Price

$72.29

$21.10 discount

UndervaluedFair: $93.39Overvalued
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

HSIC1 strengths · Avg: 8.0/10
Price/BookValuation
2.6x8/10

Reasonable price relative to book value

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

HSIC3 concerns · Avg: 3.3/10
PEG RatioValuation
1.684/10

Expensive relative to growth rate

Profit MarginProfitability
3.0%3/10

3.0% margin — thin

Debt/EquityHealth
1.023/10

Elevated debt levels

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 : HSIC

The strongest argument for HSIC centers on Price/Book.

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 : HSIC

The primary concerns for HSIC are PEG Ratio, Profit Margin, Debt/Equity. Thin 3.0% margins leave little buffer for downturns.

Bear Case : MCK

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

Key Dynamics to Monitor

HSIC profiles as a value stock while MCK is a mature play — different risk/reward profiles.

HSIC carries more volatility with a beta of 0.85 — 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.

Bottom Line

MCK scores higher overall (57/100 vs 56/100), 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.

Henry Schein Inc

HEALTHCARE · MEDICAL DISTRIBUTION · USA

Henry Schein, Inc. is an American distributor of health care products and services with a presence in 32 countries.

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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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