Johnson & Johnson (JNJ)vsMcKesson Corporation (MCK)
JNJ
Johnson & Johnson
$254.66
+3.99%
HEALTHCARE · Cap: $613.02B
MCK
McKesson Corporation
$763.51
+2.47%
HEALTHCARE · Cap: $89.39B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 319% more annual revenue ($403.43B vs $96.36B). JNJ leads profitability with a 21.8% profit margin vs 1.2%. MCK appears more attractively valued with a PEG of 1.49. JNJ earns a higher WallStSmart Score of 57/100 (C).
JNJ
Buy57
out of 100
Grade: C
MCK
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-87.1%
Fair Value
$136.12
Current Price
$254.66
$118.54 premium
Margin of Safety
-65.1%
Fair Value
$577.34
Current Price
$763.51
$186.17 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 26 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 27.4%
Generating 1.5B in free cash flow
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Earnings expanding 37.2% YoY
Generating 3.3B in free cash flow
Areas to Watch
Moderate valuation
Expensive relative to growth rate
Earnings declined 52.9%
ROE of 0.0% — below average capital efficiency
1.2% margin — thin
Operating margin of 2.2%
Comparative Analysis Report
WallStSmart ResearchBull Case : JNJ
The strongest argument for JNJ centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 21.8% and operating margin at 27.4%.
Bull Case : MCK
The strongest argument for MCK centers on Debt/Equity, Altman Z-Score, Market Cap. PEG of 1.49 suggests the stock is reasonably priced for its growth.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.
Bear Case : MCK
The primary concerns for MCK are Return on Equity, Profit Margin, Operating Margin. Thin 1.2% margins leave little buffer for downturns.
Key Dynamics to Monitor
JNJ profiles as a mature stock while MCK is a value play — different risk/reward profiles.
MCK carries more volatility with a beta of 0.32 — expect wider price swings.
JNJ is growing revenue faster at 9.9% — sustainability is the question.
MCK generates stronger free cash flow (3.3B), providing more financial flexibility.
Bottom Line
JNJ scores higher overall (57/100 vs 55/100), backed by strong 21.8% margins. 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.
Johnson & Johnson
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Johnson & Johnson (J&J) is an American multinational corporation founded in 1886 that develops medical devices, pharmaceuticals, and consumer packaged goods. Its common stock is a component of the Dow Jones Industrial Average and the company is ranked No. 36 on the 2021 Fortune 500 list of the largest United States corporations by total revenue. Johnson & Johnson is one of the world's most valuable companies, and is one of only two U.S.-based companies that has a prime credit rating of AAA, higher than that of the United States government.
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 DRUG MANUFACTURERS - GENERAL Stocks
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