Intuitive Surgical Inc (ISRG)vsMcKesson Corporation (MCK)
ISRG
Intuitive Surgical Inc
$450.06
-0.76%
HEALTHCARE · Cap: $160.61B
MCK
McKesson Corporation
$736.09
-2.47%
HEALTHCARE · Cap: $92.45B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 3661% more annual revenue ($397.96B vs $10.58B). ISRG leads profitability with a 28.1% profit margin vs 1.1%. MCK appears more attractively valued with a PEG of 0.90. ISRG earns a higher WallStSmart Score of 64/100 (C+).
ISRG
Buy64
out of 100
Grade: C+
MCK
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+76.6%
Fair Value
$1938.99
Current Price
$450.06
$1488.93 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
Strong operational efficiency at 30.9%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Keeps 28 of every $100 in revenue as profit
Revenue surging 23.0% year-over-year
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
Expensive relative to growth rate
Trading at 9.1x book value
Premium valuation, high expectations priced in
ROE of 0.0% — below average capital efficiency
1.1% margin — thin
Operating margin of 1.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : ISRG
The strongest argument for ISRG centers on Operating Margin, Altman Z-Score, Market Cap. Profitability is solid with margins at 28.1% and operating margin at 30.9%. Revenue growth of 23.0% demonstrates continued momentum.
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 : ISRG
The primary concerns for ISRG are PEG Ratio, Price/Book, P/E Ratio. A P/E of 55.2x leaves little room for execution misses.
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
ISRG profiles as a growth stock while MCK is a value play — different risk/reward profiles.
ISRG carries more volatility with a beta of 1.51 — expect wider price swings.
ISRG is growing revenue faster at 23.0% — sustainability is the question.
MCK generates stronger free cash flow (3.4B), providing more financial flexibility.
Bottom Line
ISRG scores higher overall (64/100 vs 62/100), backed by strong 28.1% margins and 23.0% 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.
Intuitive Surgical Inc
HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA
Intuitive Surgical, Inc. is an American corporation that develops, manufactures, and markets robotic products designed to improve clinical outcomes of patients through minimally invasive surgery, most notably with the da Vinci Surgical System.
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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