McKesson Corporation (MCK)vsThe Travelers Companies Inc (TRV)
MCK
McKesson Corporation
$879.75
-0.25%
HEALTHCARE · Cap: $108.85B
TRV
The Travelers Companies Inc
$290.59
-0.83%
FINANCIAL SERVICES · Cap: $65.36B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 715% more annual revenue ($397.96B vs $48.83B). TRV leads profitability with a 12.9% profit margin vs 1.1%. MCK appears more attractively valued with a PEG of 1.07. TRV earns a higher WallStSmart Score of 71/100 (B).
MCK
Buy57
out of 100
Grade: C
TRV
Strong Buy71
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
+75.4%
Fair Value
$1213.50
Current Price
$290.59
$922.91 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
Attractively priced relative to earnings
Large-cap with strong market position
Every $100 of equity generates 21 in profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
Strong operational efficiency at 25.9%
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
3.5% revenue growth
Negative free cash flow — burning cash
Distress zone — elevated risk
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 : TRV
The strongest argument for TRV centers on P/E Ratio, Market Cap, Return on Equity.
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 : TRV
The primary concerns for TRV are PEG Ratio, Revenue Growth, Free Cash Flow.
Key Dynamics to Monitor
TRV carries more volatility with a beta of 0.50 — expect wider price swings.
MCK is growing revenue faster at 11.4% — sustainability is the question.
Monitor MEDICAL DISTRIBUTION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TRV scores higher overall (71/100 vs 57/100). 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 →The Travelers Companies Inc
FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA
The Travelers Companies, Inc., commonly known as Travelers, is an American insurance company.
Visit Website →Compare with Other MEDICAL DISTRIBUTION Stocks
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