WallStSmart

McKesson Corporation (MCK)vsPACCAR Inc (PCAR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

McKesson Corporation generates 1299% more annual revenue ($397.96B vs $28.44B). MCK leads profitability with a 109.0% profit margin vs 8.3%. MCK appears more attractively valued with a PEG of 1.08. MCK earns a higher WallStSmart Score of 57/100 (C).

MCK

Buy

57

out of 100

Grade: C

Growth: 8.0Profit: 6.0Value: 10.0Quality: 7.0
Piotroski: 4/9Altman Z: 5.22

PCAR

Hold

46

out of 100

Grade: D+

Growth: 2.0Profit: 6.0Value: 7.3Quality: 4.5
Piotroski: 1/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MCKUndervalued (+41.2%)

Margin of Safety

+41.2%

Fair Value

$1621.15

Current Price

$881.94

$739.21 discount

UndervaluedFair: $1621.15Overvalued
PCARSignificantly Overvalued (-327.9%)

Margin of Safety

-327.9%

Fair Value

$30.26

Current Price

$115.80

$85.54 premium

UndervaluedFair: $30.26Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MCK6 strengths · Avg: 9.2/10
Profit MarginProfitability
109.0%10/10

Keeps 109 of every $100 in revenue as profit

Debt/EquityHealth
-6.6410/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
5.2210/10

Safe zone — low bankruptcy risk

Market CapQuality
$109.34B9/10

Large-cap with strong market position

EPS GrowthGrowth
38.0%8/10

Earnings expanding 38.0% YoY

Free Cash FlowQuality
$1.12B8/10

Generating 1.1B in free cash flow

PCAR1 strengths · Avg: 9.0/10
Market CapQuality
$58.51B9/10

Large-cap with strong market position

Areas to Watch

MCK3 concerns · Avg: 3.3/10
P/E RatioValuation
25.6x4/10

Moderate valuation

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Operating MarginProfitability
1.6%3/10

Operating margin of 1.6%

PCAR3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

Revenue GrowthGrowth
-13.7%2/10

Revenue declined 13.7%

EPS GrowthGrowth
-35.9%2/10

Earnings declined 35.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : MCK

The strongest argument for MCK centers on Profit Margin, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 109.0% and operating margin at 1.6%. Revenue growth of 11.4% demonstrates continued momentum.

Bull Case : PCAR

The strongest argument for PCAR centers on Market Cap. PEG of 1.13 suggests the stock is reasonably priced for its growth.

Bear Case : MCK

The primary concerns for MCK are P/E Ratio, Return on Equity, Operating Margin.

Bear Case : PCAR

The primary concerns for PCAR are Piotroski F-Score, Revenue Growth, EPS Growth.

Key Dynamics to Monitor

MCK profiles as a mature stock while PCAR is a value play — different risk/reward profiles.

PCAR carries more volatility with a beta of 1.05 — 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

MCK scores higher overall (57/100 vs 46/100), backed by strong 109.0% margins and 11.4% revenue growth. Both earn "Buy" 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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PACCAR Inc

INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA

PACCAR Inc is an American Fortune 500 company and counts among the largest manufacturers of medium- and heavy-duty trucks in the world. PACCAR is engaged in the design, manufacture and customer support of light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt, Leyland Trucks, and DAF nameplates. PACCAR also designs and manufactures powertrains, provides financial services and information technology, and distributes truck parts related to its principal business.

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