McKesson Corporation (MCK)vsServiceNow Inc (NOW)
MCK
McKesson Corporation
$736.09
-2.47%
HEALTHCARE · Cap: $92.45B
NOW
ServiceNow Inc
$91.18
-2.58%
TECHNOLOGY · Cap: $96.52B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 2751% more annual revenue ($397.96B vs $13.96B). NOW leads profitability with a 12.6% profit margin vs 1.1%. NOW appears more attractively valued with a PEG of 0.89. MCK earns a higher WallStSmart Score of 62/100 (C+).
MCK
Buy62
out of 100
Grade: C+
NOW
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+63.8%
Fair Value
$2633.47
Current Price
$736.09
$1897.38 discount
Margin of Safety
+85.2%
Fair Value
$630.85
Current Price
$91.18
$539.67 discount
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
Large-cap with strong market position
Growing faster than its price suggests
Revenue surging 22.1% year-over-year
Generating 1.5B in free cash flow
Areas to Watch
ROE of 0.0% — below average capital efficiency
1.1% margin — thin
Operating margin of 1.6%
Trading at 8.0x book value
2.3% earnings growth
Distress zone — elevated risk
Weak financial health signals
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 : NOW
The strongest argument for NOW centers on Market Cap, PEG Ratio, Revenue Growth. Revenue growth of 22.1% demonstrates continued momentum. PEG of 0.89 suggests the stock is reasonably priced for its growth.
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 : NOW
The primary concerns for NOW are Price/Book, EPS Growth, Altman Z-Score. A P/E of 55.7x leaves little room for execution misses.
Key Dynamics to Monitor
MCK profiles as a value stock while NOW is a growth play — different risk/reward profiles.
NOW carries more volatility with a beta of 0.82 — expect wider price swings.
NOW is growing revenue faster at 22.1% — sustainability is the question.
MCK generates stronger free cash flow (3.4B), providing more financial flexibility.
Bottom Line
MCK scores higher overall (62/100 vs 59/100) and 11.4% revenue growth. NOW offers better value entry with a 85.2% 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.
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 →ServiceNow Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
ServiceNow is an American software company based in Santa Clara, California that develops a cloud computing platform to help companies manage digital workflows for enterprise operations.
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