WallStSmart

McKesson Corporation (MCK)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

McKesson Corporation generates 517% more annual revenue ($410.98B vs $66.57B). MRK leads profitability with a 4.8% profit margin vs 1.1%. MCK appears more attractively valued with a PEG of 1.66. MCK earns a higher WallStSmart Score of 43/100 (D).

MCK

Hold

43

out of 100

Grade: D

Growth: 5.3Profit: 4.5Value: 4.0Quality: 7.0
Piotroski: 5/9Altman Z: 5.40

MRK

Hold

36

out of 100

Grade: F

Growth: 4.0Profit: 4.5Value: 2.0Quality: 5.0
Piotroski: 3/9Altman Z: 2.27
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MCKSignificantly Overvalued (-60.4%)

Margin of Safety

-60.4%

Fair Value

$594.29

Current Price

$881.51

$287.22 premium

UndervaluedFair: $594.29Overvalued
MRKSignificantly Overvalued (-73.7%)

Margin of Safety

-73.7%

Fair Value

$82.84

Current Price

$143.93

$61.09 premium

UndervaluedFair: $82.84Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MCK3 strengths · Avg: 9.7/10
Debt/EquityHealth
-2.7610/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
5.4010/10

Safe zone — low bankruptcy risk

Market CapQuality
$102.78B9/10

Large-cap with strong market position

MRK2 strengths · Avg: 9.0/10
Market CapQuality
$355.10B10/10

Mega-cap, among the largest globally

Free Cash FlowQuality
$4.48B8/10

Generating 4.5B in free cash flow

Areas to Watch

MCK4 concerns · Avg: 3.3/10
PEG RatioValuation
1.664/10

Expensive relative to growth rate

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
1.1%3/10

1.1% margin — thin

Operating MarginProfitability
1.4%3/10

Operating margin of 1.4%

MRK4 concerns · Avg: 3.3/10
Price/BookValuation
8.5x4/10

Trading at 8.5x book value

Return on EquityProfitability
7.6%3/10

ROE of 7.6% — below average capital efficiency

Profit MarginProfitability
4.8%3/10

4.8% margin — thin

Debt/EquityHealth
1.293/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : MCK

The strongest argument for MCK centers on Debt/Equity, Altman Z-Score, Market Cap.

Bull Case : MRK

The strongest argument for MRK centers on Market Cap, Free Cash Flow.

Bear Case : MCK

The primary concerns for MCK are PEG Ratio, Return on Equity, Profit Margin. Thin 1.1% margins leave little buffer for downturns.

Bear Case : MRK

The primary concerns for MRK are Price/Book, Return on Equity, Profit Margin. A P/E of 116.1x leaves little room for execution misses. Thin 4.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

MCK carries more volatility with a beta of 0.31 — expect wider price swings.

MCK is growing revenue faster at 7.7% — sustainability is the question.

MRK generates stronger free cash flow (4.5B), providing more financial flexibility.

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

Bottom Line

MCK scores higher overall (43/100 vs 36/100). Both earn "Hold" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

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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Merck & Company Inc

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Merck & Co. is an American multinational pharmaceutical company headquartered in Kenilworth, New Jersey. It is named after the Merck family, which set up Merck Group in Germany in 1668.

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