WallStSmart

McKesson Corporation (MCK)vsRaytheon Technologies Corp (RTX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

McKesson Corporation generates 349% more annual revenue ($397.96B vs $88.60B). RTX leads profitability with a 7.6% profit margin vs 1.1%. MCK appears more attractively valued with a PEG of 1.07. MCK earns a higher WallStSmart Score of 57/100 (C).

MCK

Buy

57

out of 100

Grade: C

Growth: 8.0Profit: 4.5Value: 10.0Quality: 7.0
Piotroski: 4/9Altman Z: 5.22

RTX

Buy

55

out of 100

Grade: C-

Growth: 6.0Profit: 5.5Value: 4.7Quality: 7.0
Piotroski: 6/9Altman Z: 1.55
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MCKUndervalued (+41.2%)

Margin of Safety

+41.2%

Fair Value

$1622.09

Current Price

$879.75

$742.34 discount

UndervaluedFair: $1622.09Overvalued
RTXSignificantly Overvalued (-95.4%)

Margin of Safety

-95.4%

Fair Value

$99.80

Current Price

$195.00

$95.20 premium

UndervaluedFair: $99.80Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MCK5 strengths · Avg: 9.0/10
Debt/EquityHealth
-6.6410/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
5.2210/10

Safe zone — low bankruptcy risk

Market CapQuality
$108.85B9/10

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

RTX2 strengths · Avg: 9.0/10
Market CapQuality
$261.12B10/10

Mega-cap, among the largest globally

Free Cash FlowQuality
$3.19B8/10

Generating 3.2B in free cash flow

Areas to Watch

MCK4 concerns · Avg: 3.3/10
P/E RatioValuation
25.4x4/10

Moderate valuation

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
1.1%3/10

1.1% margin — thin

Operating MarginProfitability
1.6%3/10

Operating margin of 1.6%

RTX4 concerns · Avg: 3.3/10
P/E RatioValuation
39.0x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.554/10

Distress zone — elevated risk

Profit MarginProfitability
7.6%3/10

7.6% margin — thin

PEG RatioValuation
2.782/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull 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 : RTX

The strongest argument for RTX centers on Market Cap, Free Cash Flow. Revenue growth of 12.1% demonstrates continued momentum.

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 : RTX

The primary concerns for RTX are P/E Ratio, Altman Z-Score, Profit Margin.

Key Dynamics to Monitor

RTX carries more volatility with a beta of 0.41 — expect wider price swings.

RTX is growing revenue faster at 12.1% — sustainability is the question.

RTX generates stronger free cash flow (3.2B), providing more financial flexibility.

Monitor MEDICAL DISTRIBUTION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MCK scores higher overall (57/100 vs 55/100) 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.

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Raytheon Technologies Corp

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Raytheon Technologies Corporation is an American multinational aerospace and defense conglomerate headquartered in Waltham, Massachusetts. It is one of the largest aerospace, intelligence services providers, and defense manufacturers in the world by revenue and market capitalization. Raytheon Technologies (RTX) researches, develops, and manufactures advanced technology products in the aerospace and defense industry, including aircraft engines, avionics, aerostructures, cybersecurity, guided missiles, air defense systems, satellites, and drones.

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