McKesson Corporation (MCK)vsUnion Pacific Corporation (UNP)
MCK
McKesson Corporation
$879.75
-0.25%
HEALTHCARE · Cap: $108.85B
UNP
Union Pacific Corporation
$241.33
+0.69%
INDUSTRIALS · Cap: $142.22B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 1524% more annual revenue ($397.96B vs $24.51B). UNP leads profitability with a 29.1% profit margin vs 1.1%. MCK appears more attractively valued with a PEG of 1.07. UNP earns a higher WallStSmart Score of 60/100 (C).
MCK
Buy57
out of 100
Grade: C
UNP
Buy60
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
-13.1%
Fair Value
$211.98
Current Price
$241.33
$29.35 premium
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
Every $100 of equity generates 40 in profit
Strong operational efficiency at 40.9%
Large-cap with strong market position
Keeps 29 of every $100 in revenue as profit
Generating 1.2B 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
Revenue declined 0.6%
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 : UNP
The strongest argument for UNP centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 29.1% and operating margin at 40.9%.
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 : UNP
The primary concerns for UNP are PEG Ratio, Revenue Growth.
Key Dynamics to Monitor
MCK profiles as a value stock while UNP is a declining play — different risk/reward profiles.
UNP carries more volatility with a beta of 0.95 — expect wider price swings.
MCK is growing revenue faster at 11.4% — sustainability is the question.
UNP generates stronger free cash flow (1.2B), providing more financial flexibility.
Bottom Line
UNP scores higher overall (60/100 vs 57/100), backed by strong 29.1% margins. 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 →Union Pacific Corporation
INDUSTRIALS · RAILROADS · USA
The Union Pacific Corporation (Union Pacific) is a publicly traded railroad holding company. It was incorporated in Utah in 1969 and is headquartered in Omaha, Nebraska. It is the parent company of the current, Delaware-registered, form of the Union Pacific Railroad.
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