Kinder Morgan Inc (KMI)vsMcKesson Corporation (MCK)
KMI
Kinder Morgan Inc
$31.41
-0.35%
ENERGY · Cap: $70.13B
MCK
McKesson Corporation
$736.09
-2.47%
HEALTHCARE · Cap: $92.45B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 2171% more annual revenue ($397.96B vs $17.52B). KMI leads profitability with a 18.9% profit margin vs 1.1%. MCK appears more attractively valued with a PEG of 0.90. KMI earns a higher WallStSmart Score of 64/100 (C+).
KMI
Buy64
out of 100
Grade: C+
MCK
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-29.1%
Fair Value
$24.36
Current Price
$31.41
$7.05 premium
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
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 29.9%
Earnings expanding 36.0% YoY
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
ROE of 0.0% — below average capital efficiency
1.1% margin — thin
Operating margin of 1.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : KMI
The strongest argument for KMI centers on Market Cap, Price/Book, Operating Margin. Profitability is solid with margins at 18.9% and operating margin at 29.9%. Revenue growth of 13.8% 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 : KMI
The primary concerns for KMI are PEG Ratio.
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
KMI profiles as a mature stock while MCK is a value play — different risk/reward profiles.
KMI carries more volatility with a beta of 0.56 — expect wider price swings.
KMI is growing revenue faster at 13.8% — sustainability is the question.
MCK generates stronger free cash flow (3.4B), providing more financial flexibility.
Bottom Line
KMI scores higher overall (64/100 vs 62/100), backed by strong 18.9% margins and 13.8% 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.
Kinder Morgan Inc
ENERGY · OIL & GAS MIDSTREAM · USA
Kinder Morgan, Inc. is one of the largest energy infrastructure companies in North America. The company specializes in owning and controlling oil and gas pipelines and terminals.
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 OIL & GAS MIDSTREAM Stocks
Want to dig deeper into these stocks?