McKesson Corporation (MCK)vsServiceNow Inc (NOW)
MCK
McKesson Corporation
$879.75
-0.25%
HEALTHCARE · Cap: $108.85B
NOW
ServiceNow Inc
$103.06
-1.52%
TECHNOLOGY · Cap: $110.42B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 2897% more annual revenue ($397.96B vs $13.28B). NOW leads profitability with a 13.2% profit margin vs 1.1%. NOW appears more attractively valued with a PEG of 1.06. MCK earns a higher WallStSmart Score of 57/100 (C).
MCK
Buy57
out of 100
Grade: C
NOW
Buy56
out of 100
Grade: C
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
-404.2%
Fair Value
$20.44
Current Price
$103.06
$82.62 premium
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
Large-cap with strong market position
Revenue surging 20.7% year-over-year
Generating 2.0B in free cash flow
Areas to Watch
Moderate valuation
ROE of 0.0% — below average capital efficiency
1.1% margin — thin
Operating margin of 1.6%
Trading at 8.3x book value
3.4% 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, 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 : NOW
The strongest argument for NOW centers on Market Cap, Revenue Growth, Free Cash Flow. Revenue growth of 20.7% demonstrates continued momentum. PEG of 1.06 suggests the stock is reasonably priced for its growth.
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 : NOW
The primary concerns for NOW are Price/Book, EPS Growth, Altman Z-Score. A P/E of 62.7x 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 1.02 — expect wider price swings.
NOW is growing revenue faster at 20.7% — sustainability is the question.
NOW generates stronger free cash flow (2.0B), providing more financial flexibility.
Bottom Line
MCK scores higher overall (57/100 vs 56/100) and 11.4% revenue growth. 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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