WallStSmart

Henry Schein Inc (HSIC)vsMcKesson Corporation (MCK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

McKesson Corporation generates 2914% more annual revenue ($403.43B vs $13.38B). HSIC leads profitability with a 3.0% profit margin vs 1.2%. MCK appears more attractively valued with a PEG of 1.52. MCK earns a higher WallStSmart Score of 53/100 (C-).

HSIC

Buy

52

out of 100

Grade: C-

Growth: 4.7Profit: 5.5Value: 6.7Quality: 5.0
Piotroski: 2/9Altman Z: 2.37

MCK

Buy

53

out of 100

Grade: C-

Growth: 8.0Profit: 4.5Value: 4.0Quality: 7.0
Piotroski: 5/9Altman Z: 5.40
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HSICUndervalued (+46.8%)

Margin of Safety

+46.8%

Fair Value

$153.40

Current Price

$77.45

$75.95 discount

UndervaluedFair: $153.40Overvalued
MCKSignificantly Overvalued (-65.2%)

Margin of Safety

-65.2%

Fair Value

$576.90

Current Price

$775.66

$198.76 premium

UndervaluedFair: $576.90Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HSIC1 strengths · Avg: 8.0/10
Price/BookValuation
2.7x8/10

Reasonable price relative to book value

MCK5 strengths · Avg: 9.0/10
Debt/EquityHealth
-3.9710/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
5.4010/10

Safe zone — low bankruptcy risk

Market CapQuality
$91.29B9/10

Large-cap with strong market position

EPS GrowthGrowth
37.2%8/10

Earnings expanding 37.2% YoY

Free Cash FlowQuality
$3.31B8/10

Generating 3.3B in free cash flow

Areas to Watch

HSIC4 concerns · Avg: 3.5/10
PEG RatioValuation
1.794/10

Expensive relative to growth rate

EPS GrowthGrowth
4.5%4/10

4.5% earnings growth

Profit MarginProfitability
3.0%3/10

3.0% margin — thin

Debt/EquityHealth
1.153/10

Elevated debt levels

MCK4 concerns · Avg: 3.3/10
PEG RatioValuation
1.524/10

Expensive relative to growth rate

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
1.2%3/10

1.2% margin — thin

Operating MarginProfitability
2.2%3/10

Operating margin of 2.2%

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 Debt/Equity, Altman Z-Score, Market Cap.

Bear Case : HSIC

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

Bear Case : MCK

The primary concerns for MCK are PEG Ratio, Return on Equity, Profit Margin. Thin 1.2% margins leave little buffer for downturns.

Key Dynamics to Monitor

HSIC carries more volatility with a beta of 0.82 — expect wider price swings.

HSIC is growing revenue faster at 6.3% — sustainability is the question.

MCK generates stronger free cash flow (3.3B), providing more financial flexibility.

Monitor MEDICAL DISTRIBUTION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MCK scores higher overall (53/100 vs 52/100). HSIC offers better value entry with a 46.8% 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.

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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