Drug Manufacturers - Specialty & Generic
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HROW vs MCK
Revenue, margins, valuation, and 5-year total return — side by side.
Medical - Distribution
HROW vs MCK — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Drug Manufacturers - Specialty & Generic | Medical - Distribution |
| Market Cap | $1.50B | $91.09B |
| Revenue (TTM) | $272M | $397.96B |
| Net Income (TTM) | $-5M | $4.34B |
| Gross Margin | 75.1% | 3.4% |
| Operating Margin | 11.2% | 1.3% |
| Forward P/E | 85.4x | 19.1x |
| Total Debt | $252M | $7.39B |
| Cash & Equiv. | $73M | $5.69B |
HROW vs MCK — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Harrow Health, Inc. (HROW) | 100 | 744.4 | +644.4% |
| McKesson Corporation (MCK) | 100 | 468.7 | +368.7% |
Price return only. Dividends and distributions are not included.
Quick Verdict: HROW vs MCK
Each card shows where this stock fits in a portfolio — not just who wins on paper.
HROW is the clearest fit if your priority is growth exposure and long-term compounding.
- Rev growth 36.4%, EPS growth 71.4%, 3Y rev CAGR 45.4%
- 9.9% 10Y total return vs MCK's 351.9%
- 36.4% revenue growth vs MCK's 16.2%
MCK carries the broadest edge in this set and is the clearest fit for income & stability and sleep-well-at-night.
- Dividend streak 17 yrs, beta 0.04, yield 0.4%
- Lower volatility, beta 0.04, current ratio 0.90x
- Beta 0.04, yield 0.4%, current ratio 0.90x
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 36.4% revenue growth vs MCK's 16.2% | |
| Value | Lower P/E (19.1x vs 85.4x) | |
| Quality / Margins | 1.1% margin vs HROW's -1.9% | |
| Stability / Safety | Beta 0.04 vs HROW's 2.13 | |
| Dividends | 0.4% yield; 17-year raise streak; the other pay no meaningful dividend | |
| Momentum (1Y) | +67.0% vs MCK's +5.0% | |
| Efficiency (ROA) | 5.3% ROA vs HROW's -1.4%, ROIC 5.4% vs 9.5% |
HROW vs MCK — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
HROW vs MCK — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
HROW leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
MCK is the larger business by revenue, generating $398.0B annually — 1461.5x HROW's $272M. Profitability is closely matched — net margins range from 1.1% (MCK) to -1.9% (HROW). On growth, HROW holds the edge at +33.3% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $272M | $398.0B |
| EBITDAEarnings before interest/tax | $59M | $5.8B |
| Net IncomeAfter-tax profit | -$5M | $4.3B |
| Free Cash FlowCash after capex | $73M | $10.1B |
| Gross MarginGross profit ÷ Revenue | +75.1% | +3.4% |
| Operating MarginEBIT ÷ Revenue | +11.2% | +1.3% |
| Net MarginNet income ÷ Revenue | -1.9% | +1.1% |
| FCF MarginFCF ÷ Revenue | +26.8% | +2.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | +33.3% | +11.4% |
| EPS Growth (YoY)Latest quarter vs prior year | -5.3% | +38.2% |
Valuation Metrics
MCK leads this category, winning 2 of 3 comparable metrics.
Valuation Metrics
| Metric | ||
|---|---|---|
| Market CapShares × price | $1.5B | $91.1B |
| Enterprise ValueMkt cap + debt − cash | $1.7B | $92.8B |
| Trailing P/EPrice ÷ TTM EPS | -287.64x | 28.91x |
| Forward P/EPrice ÷ next-FY EPS est. | 85.44x | 19.06x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.74x |
| EV / EBITDAEnterprise value multiple | — | 18.53x |
| Price / SalesMarket cap ÷ Revenue | 5.51x | 0.25x |
| Price / BookPrice ÷ Book value/share | 28.42x | — |
| Price / FCFMarket cap ÷ FCF | — | 17.43x |
Profitability & Efficiency
MCK leads this category, winning 5 of 7 comparable metrics.
Profitability & Efficiency
On the Piotroski fundamental quality scale (0–9), MCK scores 6/9 vs HROW's 4/9, reflecting solid financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | -10.1% | — |
| ROA (TTM)Return on assets | -1.4% | +5.3% |
| ROICReturn on invested capital | +9.5% | +5.4% |
| ROCEReturn on capital employed | +10.2% | +30.5% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 6 |
| Debt / EquityFinancial leverage | 4.84x | — |
| Net DebtTotal debt minus cash | $179M | $1.7B |
| Cash & Equiv.Liquid assets | $73M | $5.7B |
| Total DebtShort + long-term debt | $252M | $7.4B |
| Interest CoverageEBIT ÷ Interest expense | 0.53x | 25.04x |
Total Returns (Dividends Reinvested)
Evenly matched — HROW and MCK each lead in 3 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in HROW five years ago would be worth $48,931 today (with dividends reinvested), compared to $40,840 for MCK. Over the past 12 months, HROW leads with a +67.0% total return vs MCK's +5.0%. The 3-year compound annual growth rate (CAGR) favors MCK at 26.8% vs HROW's 13.8% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -19.3% | -9.6% |
| 1-Year ReturnPast 12 months | +67.0% | +5.0% |
| 3-Year ReturnCumulative with dividends | +47.5% | +104.0% |
| 5-Year ReturnCumulative with dividends | +389.3% | +308.4% |
| 10-Year ReturnCumulative with dividends | +988.4% | +351.9% |
| CAGR (3Y)Annualised 3-year return | +13.8% | +26.8% |
Risk & Volatility
MCK leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
MCK is the less volatile stock with a 0.04 beta — it tends to amplify market swings less than HROW's 2.13 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.13x | 0.04x |
| 52-Week HighHighest price in past year | $54.85 | $999.00 |
| 52-Week LowLowest price in past year | $21.12 | $637.00 |
| % of 52W HighCurrent price vs 52-week peak | +73.4% | +74.4% |
| RSI (14)Momentum oscillator 0–100 | 55.8 | 25.8 |
| Avg Volume (50D)Average daily shares traded | 732K | 737K |
Analyst Outlook
MCK leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates HROW as "Buy" and MCK as "Buy". Consensus price targets imply 87.9% upside for HROW (target: $76) vs 35.3% for MCK (target: $1007). MCK is the only dividend payer here at 0.36% yield — a key consideration for income-focused portfolios.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $75.67 | $1006.50 |
| # AnalystsCovering analysts | 10 | 31 |
| Dividend YieldAnnual dividend ÷ price | — | +0.4% |
| Dividend StreakConsecutive years of raises | 0 | 17 |
| Dividend / ShareAnnual DPS | — | $2.69 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +3.5% |
MCK leads in 4 of 6 categories (Valuation Metrics, Profitability & Efficiency). HROW leads in 1 (Income & Cash Flow). 1 tied.
HROW vs MCK: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is HROW or MCK a better buy right now?
For growth investors, Harrow Health, Inc.
(HROW) is the stronger pick with 36. 4% revenue growth year-over-year, versus 16. 2% for McKesson Corporation (MCK). McKesson Corporation (MCK) offers the better valuation at 28. 9x trailing P/E (19. 1x forward), making it the more compelling value choice. Analysts rate Harrow Health, Inc. (HROW) a "Buy" — based on 10 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — HROW or MCK?
On forward P/E, McKesson Corporation is actually cheaper at 19.
1x.
03Which is the better long-term investment — HROW or MCK?
Over the past 5 years, Harrow Health, Inc.
(HROW) delivered a total return of +389. 3%, compared to +308. 4% for McKesson Corporation (MCK). Over 10 years, the gap is even starker: HROW returned +988. 4% versus MCK's +351. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — HROW or MCK?
By beta (market sensitivity over 5 years), McKesson Corporation (MCK) is the lower-risk stock at 0.
04β versus Harrow Health, Inc. 's 2. 13β — meaning HROW is approximately 4837% more volatile than MCK relative to the S&P 500.
05Which is growing faster — HROW or MCK?
By revenue growth (latest reported year), Harrow Health, Inc.
(HROW) is pulling ahead at 36. 4% versus 16. 2% for McKesson Corporation (MCK). On earnings-per-share growth, the picture is similar: Harrow Health, Inc. grew EPS 71. 4% year-over-year, compared to 14. 9% for McKesson Corporation. Over a 3-year CAGR, HROW leads at 45. 4% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — HROW or MCK?
McKesson Corporation (MCK) is the more profitable company, earning 0.
9% net margin versus -1. 9% for Harrow Health, Inc. — meaning it keeps 0. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HROW leads at 11. 2% versus 1. 2% for MCK. At the gross margin level — before operating expenses — HROW leads at 75. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is HROW or MCK more undervalued right now?
On forward earnings alone, McKesson Corporation (MCK) trades at 19.
1x forward P/E versus 85. 4x for Harrow Health, Inc. — 66. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HROW: 87. 9% to $75. 67.
08Which pays a better dividend — HROW or MCK?
In this comparison, MCK (0.
4% yield) pays a dividend. HROW does not pay a meaningful dividend and should not be held primarily for income.
09Is HROW or MCK better for a retirement portfolio?
For long-horizon retirement investors, McKesson Corporation (MCK) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
04), +351. 9% 10Y return). Harrow Health, Inc. (HROW) carries a higher beta of 2. 13 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (MCK: +351. 9%, HROW: +988. 4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between HROW and MCK?
Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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