WallStSmart

McKesson Corporation (MCK)vsWilliams Companies Inc (WMB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

McKesson Corporation generates 3186% more annual revenue ($397.96B vs $12.11B). WMB leads profitability with a 23.1% profit margin vs 1.1%. MCK appears more attractively valued with a PEG of 0.90. WMB earns a higher WallStSmart Score of 65/100 (C+).

MCK

Buy

62

out of 100

Grade: C+

Growth: 8.0Profit: 4.5Value: 8.0Quality: 6.3
Piotroski: 6/9

WMB

Buy

65

out of 100

Grade: C+

Growth: 6.0Profit: 8.0Value: 4.3Quality: 3.3
Piotroski: 3/9Altman Z: 0.37
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MCKUndervalued (+63.8%)

Margin of Safety

+63.8%

Fair Value

$2633.47

Current Price

$736.09

$1897.38 discount

UndervaluedFair: $2633.47Overvalued

Intrinsic value data unavailable for WMB.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MCK5 strengths · Avg: 8.6/10
Debt/EquityHealth
-6.6410/10

Conservative balance sheet, low leverage

Market CapQuality
$92.45B9/10

Large-cap with strong market position

PEG RatioValuation
0.908/10

Growing faster than its price suggests

EPS GrowthGrowth
38.0%8/10

Earnings expanding 38.0% YoY

Free Cash FlowQuality
$3.42B8/10

Generating 3.4B in free cash flow

WMB4 strengths · Avg: 9.0/10
Operating MarginProfitability
33.6%10/10

Strong operational efficiency at 33.6%

Market CapQuality
$89.22B9/10

Large-cap with strong market position

Profit MarginProfitability
23.1%9/10

Keeps 23 of every $100 in revenue as profit

EPS GrowthGrowth
25.0%8/10

Earnings expanding 25.0% YoY

Areas to Watch

MCK3 concerns · Avg: 3.0/10
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%

WMB4 concerns · Avg: 3.3/10
PEG RatioValuation
2.484/10

Expensive relative to growth rate

P/E RatioValuation
32.0x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Altman Z-ScoreHealth
0.372/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : MCK

The strongest argument for MCK centers on Debt/Equity, Market Cap, PEG Ratio. Revenue growth of 11.4% demonstrates continued momentum. PEG of 0.90 suggests the stock is reasonably priced for its growth.

Bull Case : WMB

The strongest argument for WMB centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 23.1% and operating margin at 33.6%.

Bear Case : MCK

The primary concerns for MCK are Return on Equity, Profit Margin, Operating Margin. Thin 1.1% margins leave little buffer for downturns.

Bear Case : WMB

The primary concerns for WMB are PEG Ratio, P/E Ratio, Piotroski F-Score.

Key Dynamics to Monitor

MCK profiles as a value stock while WMB is a mature play — different risk/reward profiles.

WMB carries more volatility with a beta of 0.63 — expect wider price swings.

MCK is growing revenue faster at 11.4% — sustainability is the question.

MCK generates stronger free cash flow (3.4B), providing more financial flexibility.

Bottom Line

WMB scores higher overall (65/100 vs 62/100), backed by strong 23.1% margins. MCK offers better value entry with a 63.8% 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 →

Williams Companies Inc

ENERGY · OIL & GAS MIDSTREAM · USA

The Williams Companies, Inc., is an American energy company based in Tulsa, Oklahoma. Its core business is natural gas processing and transportation, with additional petroleum and electricity generation assets.

Want to dig deeper into these stocks?