McKesson Corporation (MCK)vsPepsiCo Inc (PEP)
MCK
McKesson Corporation
$879.75
-0.25%
HEALTHCARE · Cap: $108.85B
PEP
PepsiCo Inc
$151.73
+0.76%
CONSUMER DEFENSIVE · Cap: $205.91B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 324% more annual revenue ($397.96B vs $93.92B). PEP leads profitability with a 8.8% profit margin vs 1.1%. MCK appears more attractively valued with a PEG of 1.07. PEP earns a higher WallStSmart Score of 59/100 (C).
MCK
Buy57
out of 100
Grade: C
PEP
Buy59
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
+45.9%
Fair Value
$280.33
Current Price
$151.73
$128.60 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
Every $100 of equity generates 43 in profit
Earnings expanding 67.5% YoY
Generating 4.7B 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%
Moderate valuation
Trading at 10.2x book value
Weak financial health signals
Expensive relative to growth rate
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 : PEP
The strongest argument for PEP centers on Market Cap, Return on Equity, EPS 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 : PEP
The primary concerns for PEP are P/E Ratio, Price/Book, Piotroski F-Score.
Key Dynamics to Monitor
PEP carries more volatility with a beta of 0.38 — expect wider price swings.
MCK is growing revenue faster at 11.4% — sustainability is the question.
PEP generates stronger free cash flow (4.7B), providing more financial flexibility.
Monitor MEDICAL DISTRIBUTION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PEP scores higher overall (59/100 vs 57/100). MCK offers better value entry with a 41.2% 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 →PepsiCo Inc
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
PepsiCo, Inc. is an American based multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo's business encompasses all aspects of the food and beverage market. It oversees the manufacturing, distribution, and marketing of its products.
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