McKesson Corporation (MCK)vsMorgan Stanley (MS)
MCK
McKesson Corporation
$879.75
-0.25%
HEALTHCARE · Cap: $108.85B
MS
Morgan Stanley
$165.65
-0.13%
FINANCIAL SERVICES · Cap: $263.03B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 466% more annual revenue ($397.96B vs $70.30B). MS leads profitability with a 24.0% profit margin vs 1.1%. MCK appears more attractively valued with a PEG of 1.07. MS earns a higher WallStSmart Score of 76/100 (B+).
MCK
Buy57
out of 100
Grade: C
MS
Strong Buy76
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+41.2%
Fair Value
$1622.09
Current Price
$879.75
$742.34 discount
Margin of Safety
+59.3%
Fair Value
$407.18
Current Price
$165.65
$241.53 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Earnings expanding 38.0% YoY
Generating 1.1B in free cash flow
Mega-cap, among the largest globally
Strong operational efficiency at 38.6%
Keeps 24 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 20.7% YoY
Areas to Watch
Moderate valuation
ROE of 0.0% — below average capital efficiency
1.1% margin — thin
Operating margin of 1.6%
Expensive relative to growth rate
Weak financial health signals
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : MCK
The strongest argument for MCK centers on Debt/Equity, Altman Z-Score, Market Cap. Revenue growth of 11.4% demonstrates continued momentum. PEG of 1.07 suggests the stock is reasonably priced for its growth.
Bull Case : MS
The strongest argument for MS centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 24.0% and operating margin at 38.6%. Revenue growth of 11.0% demonstrates continued momentum.
Bear Case : MCK
The primary concerns for MCK are P/E Ratio, Return on Equity, Profit Margin. Thin 1.1% margins leave little buffer for downturns.
Bear Case : MS
The primary concerns for MS are PEG Ratio, Piotroski F-Score, Free Cash Flow.
Key Dynamics to Monitor
MCK profiles as a value stock while MS is a mature play — different risk/reward profiles.
MS carries more volatility with a beta of 1.21 — expect wider price swings.
MCK is growing revenue faster at 11.4% — sustainability is the question.
MCK generates stronger free cash flow (1.1B), providing more financial flexibility.
Bottom Line
MS scores higher overall (76/100 vs 57/100), backed by strong 24.0% margins and 11.0% revenue growth. MCK offers better value entry with a 41.2% margin of safety. Both earn "Strong 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.
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 →Morgan Stanley
FINANCIAL SERVICES · CAPITAL MARKETS · USA
Morgan Stanley is an American multinational investment bank and financial services company headquartered at 1585 Broadway in the Morgan Stanley Building, Midtown Manhattan, New York City.
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