McKesson Corporation (MCK)vsPure Storage Inc (PSTG)
MCK
McKesson Corporation
$885.84
-1.46%
HEALTHCARE · Cap: $109.34B
PSTG
Pure Storage Inc
$62.63
-4.31%
TECHNOLOGY · Cap: $20.68B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 10765% more annual revenue ($397.96B vs $3.66B). MCK leads profitability with a 109.0% profit margin vs 5.1%. MCK appears more attractively valued with a PEG of 1.08. PSTG earns a higher WallStSmart Score of 59/100 (C).
MCK
Buy57
out of 100
Grade: C
PSTG
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+41.2%
Fair Value
$1621.15
Current Price
$885.84
$735.31 discount
Margin of Safety
-195.4%
Fair Value
$25.74
Current Price
$62.63
$36.89 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 109 of every $100 in revenue as profit
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
Earnings expanding 140.6% YoY
Revenue surging 20.4% year-over-year
Areas to Watch
Moderate valuation
ROE of 0.0% — below average capital efficiency
Operating margin of 1.6%
Trading at 14.3x book value
5.1% margin — thin
Premium valuation, high expectations priced in
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull 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 : PSTG
The strongest argument for PSTG centers on EPS Growth, Revenue Growth. Revenue growth of 20.4% demonstrates continued momentum. PEG of 1.47 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 : PSTG
The primary concerns for PSTG are Price/Book, Profit Margin, P/E Ratio. A P/E of 113.9x leaves little room for execution misses.
Key Dynamics to Monitor
MCK profiles as a mature stock while PSTG is a growth play — different risk/reward profiles.
PSTG carries more volatility with a beta of 1.33 — expect wider price swings.
PSTG is growing revenue faster at 20.4% — sustainability is the question.
MCK generates stronger free cash flow (1.1B), providing more financial flexibility.
Bottom Line
PSTG scores higher overall (59/100 vs 57/100) and 20.4% revenue growth. 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 →Pure Storage Inc
TECHNOLOGY · COMPUTER HARDWARE · USA
Pure Storage, Inc. provides data storage technology and solutions in the United States and internationally. The company is headquartered in Mountain View, California.
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