MCK
McKesson Corporation
Medical - Distribution
Market Cap$98.11B
5Y Perf.+404.8%
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Stock Comparison
MCK vs CVS
Revenue, margins, valuation, and 5-year total return — side by side.
CVS
CVS Health Corporation
Medical - Healthcare Plans
Market Cap$102.56B
5Y Perf.+23.1%
MCK vs CVS — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | MCK | CVS |
|---|---|---|
| Industry | Medical - Distribution | Medical - Healthcare Plans |
| Market Cap | $98.11B | $102.56B |
| Revenue (TTM) | $397.96B | $402.07B |
| Net Income (TTM) | $4.34B | $1.77B |
| Gross Margin | 3.4% | 13.8% |
| Operating Margin | 1.3% | 1.2% |
| Forward P/E | 20.5x | 11.3x |
| Total Debt | $7.39B | $93.59B |
| Cash & Equiv. | $5.69B | $8.51B |
MCK vs CVS — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
MCK
CVS
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| McKesson Corporation (MCK) | 100 | 504.8 | +404.8% |
| CVS Health Corporat… (CVS) | 100 | 123.1 | +23.1% |
Price return only. Dividends and distributions are not included.
Quick Verdict: MCK vs CVS
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: MCK leads in 5 of 7 categories, making it the strongest pick for growth and revenue expansion and profitability and margin quality. CVS Health Corporation is the stronger pick specifically for valuation and capital efficiency and recent price momentum and sentiment. As sector peers, any of these can serve as alternatives in the same allocation.
MCK
McKesson Corporation
The Income Pick
MCK carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 17 yrs, beta 0.04, yield 0.3%
- Rev growth 16.2%, EPS growth 14.9%, 3Y rev CAGR 10.8%
- 375.1% 10Y total return vs CVS's -2.2%
Best for: income & stability and growth exposure
CVS
CVS Health Corporation
The Insurance Pick
CVS is the clearest fit if your priority is value and momentum.
- Lower P/E (11.3x vs 20.5x)
- +24.2% vs MCK's +13.7%
Best for: value and momentum
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | MCK | 16.2% revenue growth vs CVS's 7.8% |
| Value | CVS | Lower P/E (11.3x vs 20.5x) |
| Quality / Margins | MCK | 1.1% margin vs CVS's 0.4% |
| Stability / Safety | MCK | Beta 0.04 vs CVS's 0.05 |
| Dividends | MCK | 0.3% yield, 17-year raise streak, vs CVS's 3.3% |
| Momentum (1Y) | CVS | +24.2% vs MCK's +13.7% |
| Efficiency (ROA) | MCK | 5.3% ROA vs CVS's 0.7%, ROIC 5.4% vs 5.0% |
MCK vs CVS — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
MCK vs CVS — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLMCKLAGGINGCVS
CVSCVS Health Corporation
1leads
MCKMcKesson Corporation
3leads
6 Total Categories
CATEGORYLEADERvs CVSMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
MCK4/6
Valuation MetricsMultiples, price ratios, and targets
CVS4/5
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
MCK7/7
Total Returns1Y, 3Y, 5Y total returns with dividends
MCK4/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
Tied
—
Income & Cash Flow (Last 12 Months)
MCK leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
CVS and MCK operate at a comparable scale, with $402.1B and $398.0B in trailing revenue. Profitability is closely matched — net margins range from 1.1% (MCK) to 0.4% (CVS). On growth, MCK holds the edge at +11.4% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | MCKMcKesson Corporat… | CVSCVS Health Corpor… |
|---|---|---|
| RevenueTrailing 12 months | $398.0B | $402.1B |
| EBITDAEarnings before interest/tax | $5.8B | $9.3B |
| Net IncomeAfter-tax profit | $4.3B | $1.8B |
| Free Cash FlowCash after capex | $10.1B | $7.8B |
| Gross MarginGross profit ÷ Revenue | +3.4% | +13.8% |
| Operating MarginEBIT ÷ Revenue | +1.3% | +1.2% |
| Net MarginNet income ÷ Revenue | +1.1% | +0.4% |
| FCF MarginFCF ÷ Revenue | +2.5% | +1.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +11.4% | +8.2% |
| EPS Growth (YoY)Latest quarter vs prior year | +38.2% | +76.9% |
MCK leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
CVS leads this category, winning 4 of 5 comparable metrics.
Valuation Metrics
At 31.1x trailing earnings, MCK trades at a 46% valuation discount to CVS's 58.1x P/E. On an enterprise value basis, CVS's 12.5x EV/EBITDA is more attractive than MCK's 19.9x.
| Metric | MCKMcKesson Corporat… | CVSCVS Health Corpor… |
|---|---|---|
| Market CapShares × price | $98.1B | $102.6B |
| Enterprise ValueMkt cap + debt − cash | $99.8B | $187.6B |
| Trailing P/EPrice ÷ TTM EPS | 31.14x | 58.05x |
| Forward P/EPrice ÷ next-FY EPS est. | 20.53x | 11.27x |
| PEG RatioP/E ÷ EPS growth rate | 0.80x | — |
| EV / EBITDAEnterprise value multiple | 19.93x | 12.52x |
| Price / SalesMarket cap ÷ Revenue | 0.27x | 0.26x |
| Price / BookPrice ÷ Book value/share | — | 1.36x |
| Price / FCFMarket cap ÷ FCF | 18.77x | 13.14x |
CVS leads this category, winning 4 of 5 comparable metrics.
Profitability & Efficiency
MCK leads this category, winning 7 of 7 comparable metrics.
Profitability & Efficiency
On the Piotroski fundamental quality scale (0–9), MCK scores 6/9 vs CVS's 5/9, reflecting solid financial health.
| Metric | MCKMcKesson Corporat… | CVSCVS Health Corpor… |
|---|---|---|
| ROE (TTM)Return on equity | — | +2.3% |
| ROA (TTM)Return on assets | +5.3% | +0.7% |
| ROICReturn on invested capital | +5.4% | +5.0% |
| ROCEReturn on capital employed | +30.5% | +6.1% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 5 |
| Debt / EquityFinancial leverage | — | 1.24x |
| Net DebtTotal debt minus cash | $1.7B | $85.1B |
| Cash & Equiv.Liquid assets | $5.7B | $8.5B |
| Total DebtShort + long-term debt | $7.4B | $93.6B |
| Interest CoverageEBIT ÷ Interest expense | 25.04x | 1.68x |
MCK leads this category, winning 7 of 7 comparable metrics.
Total Returns (Dividends Reinvested)
MCK leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in MCK five years ago would be worth $43,011 today (with dividends reinvested), compared to $11,195 for CVS. Over the past 12 months, CVS leads with a +24.2% total return vs MCK's +13.7%. The 3-year compound annual growth rate (CAGR) favors MCK at 30.3% vs CVS's 7.8% — a key indicator of consistent wealth creation.
| Metric | MCKMcKesson Corporat… | CVSCVS Health Corpor… |
|---|---|---|
| YTD ReturnYear-to-date | -2.6% | +2.4% |
| 1-Year ReturnPast 12 months | +13.7% | +24.2% |
| 3-Year ReturnCumulative with dividends | +121.2% | +25.3% |
| 5-Year ReturnCumulative with dividends | +330.1% | +11.9% |
| 10-Year ReturnCumulative with dividends | +375.1% | -2.2% |
| CAGR (3Y)Annualised 3-year return | +30.3% | +7.8% |
MCK leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
Evenly matched — MCK and CVS each lead in 1 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 CVS's 0.05 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. CVS currently trades 94.8% from its 52-week high vs MCK's 80.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | MCKMcKesson Corporat… | CVSCVS Health Corpor… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.04x | 0.05x |
| 52-Week HighHighest price in past year | $999.00 | $85.15 |
| 52-Week LowLowest price in past year | $637.00 | $58.35 |
| % of 52W HighCurrent price vs 52-week peak | +80.2% | +94.8% |
| RSI (14)Momentum oscillator 0–100 | 27.7 | 62.0 |
| Avg Volume (50D)Average daily shares traded | 690K | 7.3M |
Evenly matched — MCK and CVS each lead in 1 of 2 comparable metrics.
Analyst Outlook
Evenly matched — MCK and CVS each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates MCK as "Buy" and CVS as "Buy". Consensus price targets imply 25.7% upside for MCK (target: $1007) vs 18.0% for CVS (target: $95). For income investors, CVS offers the higher dividend yield at 3.31% vs MCK's 0.34%.
| Metric | MCKMcKesson Corporat… | CVSCVS Health Corpor… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $1006.50 | $95.20 |
| # AnalystsCovering analysts | 31 | 41 |
| Dividend YieldAnnual dividend ÷ price | +0.3% | +3.3% |
| Dividend StreakConsecutive years of raises | 17 | 0 |
| Dividend / ShareAnnual DPS | $2.69 | $2.67 |
| Buyback YieldShare repurchases ÷ mkt cap | +3.2% | 0.0% |
Evenly matched — MCK and CVS each lead in 1 of 2 comparable metrics.
Key Takeaway
MCK leads in 3 of 6 categories (Income & Cash Flow, Profitability & Efficiency). CVS leads in 1 (Valuation Metrics). 2 tied.
Best OverallMcKesson Corporation (MCK)Leads 3 of 6 categories
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MCK vs CVS: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is MCK or CVS a better buy right now?
For growth investors, McKesson Corporation (MCK) is the stronger pick with 16.
2% revenue growth year-over-year, versus 7. 8% for CVS Health Corporation (CVS). McKesson Corporation (MCK) offers the better valuation at 31. 1x trailing P/E (20. 5x forward), making it the more compelling value choice. Analysts rate McKesson Corporation (MCK) a "Buy" — based on 31 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 — MCK or CVS?
On trailing P/E, McKesson Corporation (MCK) is the cheapest at 31.
1x versus CVS Health Corporation at 58. 1x. On forward P/E, CVS Health Corporation is actually cheaper at 11. 3x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — MCK or CVS?
Over the past 5 years, McKesson Corporation (MCK) delivered a total return of +330.
1%, compared to +11. 9% for CVS Health Corporation (CVS). Over 10 years, the gap is even starker: MCK returned +375. 1% versus CVS's -2. 2%. 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 — MCK or CVS?
By beta (market sensitivity over 5 years), McKesson Corporation (MCK) is the lower-risk stock at 0.
04β versus CVS Health Corporation's 0. 05β — meaning CVS is approximately 17% more volatile than MCK relative to the S&P 500.
05Which is growing faster — MCK or CVS?
By revenue growth (latest reported year), McKesson Corporation (MCK) is pulling ahead at 16.
2% versus 7. 8% for CVS Health Corporation (CVS). On earnings-per-share growth, the picture is similar: McKesson Corporation grew EPS 14. 9% year-over-year, compared to -62. 0% for CVS Health Corporation. Over a 3-year CAGR, MCK leads at 10. 8% 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 — MCK or CVS?
McKesson Corporation (MCK) is the more profitable company, earning 0.
9% net margin versus 0. 4% for CVS Health Corporation — meaning it keeps 0. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CVS leads at 2. 6% versus 1. 2% for MCK. At the gross margin level — before operating expenses — CVS leads at 13. 8%, 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 MCK or CVS more undervalued right now?
On forward earnings alone, CVS Health Corporation (CVS) trades at 11.
3x forward P/E versus 20. 5x for McKesson Corporation — 9. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MCK: 25. 7% to $1006. 50.
08Which pays a better dividend — MCK or CVS?
All stocks in this comparison pay dividends.
CVS Health Corporation (CVS) offers the highest yield at 3. 3%, versus 0. 3% for McKesson Corporation (MCK).
09Is MCK or CVS better for a retirement portfolio?
For long-horizon retirement investors, CVS Health Corporation (CVS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
05), 3. 3% yield). Both have compounded well over 10 years (CVS: -2. 2%, MCK: +375. 1%), 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 MCK and CVS?
Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: MCK is a mid-cap high-growth stock; CVS is a mid-cap income-oriented stock. CVS pays a dividend while MCK does not, making them suitable for different income and tax situations. 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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%
(MCK: 11.4% · CVS: 8.2%)P/E Ratio<
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