McKesson Corporation (MCK)vsPhilip Morris International Inc (PM)
MCK
McKesson Corporation
$879.75
-0.25%
HEALTHCARE · Cap: $108.85B
PM
Philip Morris International Inc
$165.50
+0.99%
CONSUMER DEFENSIVE · Cap: $255.09B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 879% more annual revenue ($397.96B vs $40.65B). PM leads profitability with a 27.9% profit margin vs 1.1%. MCK appears more attractively valued with a PEG of 1.07. PM earns a higher WallStSmart Score of 70/100 (B-).
MCK
Buy57
out of 100
Grade: C
PM
Strong Buy70
out of 100
Grade: B-
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
+17.9%
Fair Value
$201.54
Current Price
$165.50
$36.04 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
Strong operational efficiency at 32.9%
Keeps 28 of every $100 in revenue as profit
Generating 4.3B 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%
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
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 : PM
The strongest argument for PM centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 27.9% and operating margin at 32.9%.
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 : PM
The primary concerns for PM are PEG Ratio, Return on Equity.
Key Dynamics to Monitor
MCK profiles as a value stock while PM is a mature play — different risk/reward profiles.
PM carries more volatility with a beta of 0.40 — expect wider price swings.
MCK is growing revenue faster at 11.4% — sustainability is the question.
PM generates stronger free cash flow (4.3B), providing more financial flexibility.
Bottom Line
PM scores higher overall (70/100 vs 57/100), backed by strong 27.9% margins. MCK offers better value entry with a 41.2% 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 →Philip Morris International Inc
CONSUMER DEFENSIVE · TOBACCO · USA
Philip Morris International Inc. (PMI) is a Swiss-American multinational cigarette and tobacco manufacturing company, with products sold in over 180 countries. The most recognized and best selling product of the company is Marlboro.
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