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MCK vs VRTX

MCK
McKesson Corporation
BULLISH
Price
$842.09
Market Cap
$104.45B
Sector
Healthcare
AI Confidence
88%
VRTX
Vertex Pharmaceuticals Incorporated
NEUTRAL
Price
$446.54
Market Cap
$113.44B
Sector
Healthcare
AI Confidence
85%

Valuation

P/E Ratio
MCK
26.32
VRTX
28.9
Forward P/E
MCK
22.88
VRTX
20.35
P/B Ratio
MCK
-60.05
VRTX
6.08
P/S Ratio
MCK
0.27
VRTX
9.45
EV/EBITDA
MCK
17.07
VRTX
22.37

Profitability

Gross Margin
MCK
3.44%
VRTX
53.66%
Operating Margin
MCK
1.37%
VRTX
39.6%
Profit Margin
MCK
1.04%
VRTX
32.94%
ROE
MCK
--
VRTX
22.54%
ROA
MCK
4.78%
VRTX
12.16%

Growth

Revenue Growth
MCK
10.1%
VRTX
9.5%
Earnings Growth
MCK
377.0%
VRTX
32.9%

Financial Health

Debt/Equity
MCK
--
VRTX
0.11
Current Ratio
MCK
0.88
VRTX
2.9
Quick Ratio
MCK
0.47
VRTX
2.24

Dividends

Dividend Yield
MCK
0.39%
VRTX
--
Payout Ratio
MCK
9.22%
VRTX
0.0%

AI Verdict

MCK BULLISH

McKesson Corporation (MCK) presents a compelling investment case supported by robust earnings acceleration, consistent top-line growth, and strong analyst conviction, despite operating in a low-margin, capital-intensive distribution model. The stock has delivered exceptional long-term returns with a 373% five-year gain, underpinned by disciplined execution and favorable healthcare logistics tailwinds. While valuation appears stretched on P/E and the balance sheet lacks transparency, MCK trades at a significant discount to peers on price-to-sales and exhibits superior earnings momentum, with YoY EPS growth nearing 40%. Notably, insider selling raises caution, but the broader fundamental trajectory and sector positioning support continued outperformance.

Strengths
Exceptional earnings growth: 377% YoY and 360.6% QoQ earnings growth reflect strong operational leverage and cost discipline.
Consistent earnings beat record: 22 out of 25 quarters beat estimates, with 10+ consecutive beats and an average surprise of +8.9% over the last five quarters.
Attractive valuation relative to sector: P/S of 0.27 is dramatically below sector average of 1.0+ and peer group, suggesting significant undervaluation on revenue basis.
Risks
Extremely low profitability: 1.04% net margin and 1.37% operating margin reflect razor-thin returns typical of distribution, limiting downside protection.
Severe financial opacity: Missing key metrics (EV, debt, cash, shares outstanding) raises transparency concerns and impedes accurate credit and valuation analysis.
Negative Price/Book ratio (-60.05): Suggests accumulated losses or negative equity, a serious red flag for financial stability and accounting integrity.
VRTX NEUTRAL

VRTX shows neutral fundamentals based on deterministic rules. Financial strength is weak (F-Score 3/9). Mixed signals with both opportunities and risks present.

Strengths
Strong profitability (32.9% margin)
Low debt with D/E ratio of 0.11
Strong ROE of 22.5%
Risks
Premium vs Graham Number ($159.83)
Weak financial trend (Piotroski F-Score: 3/9)

Compare Another Pair

MCK vs VRTX: Head-to-Head Comparison

This page compares McKesson Corporation (MCK) and Vertex Pharmaceuticals Incorporated (VRTX) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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