McKesson Corporation (MCK)vsMorgan Stanley (MS)
MCK
McKesson Corporation
$736.09
-2.47%
HEALTHCARE · Cap: $92.45B
MS
Morgan Stanley
$193.09
+1.54%
FINANCIAL SERVICES · Cap: $299.95B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 444% more annual revenue ($397.96B vs $73.17B). MS leads profitability with a 24.7% profit margin vs 1.1%. MCK appears more attractively valued with a PEG of 0.90. MS earns a higher WallStSmart Score of 73/100 (B).
MCK
Buy62
out of 100
Grade: C+
MS
Strong Buy73
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+63.8%
Fair Value
$2633.47
Current Price
$736.09
$1897.38 discount
Intrinsic value data unavailable for MS.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Mega-cap, among the largest globally
Strong operational efficiency at 40.6%
Keeps 25 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
16.3% revenue growth
Areas to Watch
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, 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.
Bull Case : MS
The strongest argument for MS centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 24.7% and operating margin at 40.6%. Revenue growth of 16.3% demonstrates continued momentum.
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.
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 growth play — different risk/reward profiles.
MS carries more volatility with a beta of 1.21 — expect wider price swings.
MS is growing revenue faster at 16.3% — sustainability is the question.
MCK generates stronger free cash flow (3.4B), providing more financial flexibility.
Bottom Line
MS scores higher overall (73/100 vs 62/100), backed by strong 24.7% margins and 16.3% revenue growth. MCK offers better value entry with a 63.8% 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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