PRGO vs JNJ vs MCK vs CAH

For growth investors, McKesson Corporation (MCK) is the stronger pick with 16.

2% revenue growth year-over-year, versus -2. 8% for Perrigo Company plc (PRGO). 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 Johnson & Johnson (JNJ) a "Buy" — based on 40 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.

On trailing P/E, McKesson Corporation (MCK) is the cheapest at 28.

9x versus Johnson & Johnson at 38. 8x. On forward P/E, Perrigo Company plc is actually cheaper at 5. 8x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: McKesson Corporation wins at 0. 49x versus Johnson & Johnson's 34. 49x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, McKesson Corporation (MCK) delivered a total return of +308.

4%, compared to -58. 6% for Perrigo Company plc (PRGO). Over 10 years, the gap is even starker: MCK returned +351. 9% versus PRGO's -76. 8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Cardinal Health, Inc.

(CAH) is the lower-risk stock at 0. 03β versus Perrigo Company plc's 1. 18β — meaning PRGO is approximately 3385% more volatile than CAH relative to the S&P 500. On balance sheet safety, Johnson & Johnson (JNJ) carries a lower debt/equity ratio of 51% versus 135% for Perrigo Company plc — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), McKesson Corporation (MCK) is pulling ahead at 16.

2% versus -2. 8% for Perrigo Company plc (PRGO). On earnings-per-share growth, the picture is similar: Cardinal Health, Inc. grew EPS 87. 0% year-over-year, compared to -723. 2% for Perrigo Company plc. 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.

Johnson & Johnson (JNJ) is the more profitable company, earning 15.

8% net margin versus -33. 5% for Perrigo Company plc — meaning it keeps 15. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: JNJ leads at 24. 9% versus 1. 0% for CAH. At the gross margin level — before operating expenses — JNJ leads at 69. 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, McKesson Corporation (MCK) is the more undervalued stock at a PEG of 0. 49x versus Johnson & Johnson's 34. 49x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Perrigo Company plc (PRGO) trades at 5. 8x forward P/E versus 19. 4x for Johnson & Johnson — 13. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PRGO: 63. 1% to $20. 00.

All stocks in this comparison pay dividends.

Perrigo Company plc (PRGO) offers the highest yield at 9. 4%, versus 0. 4% for McKesson Corporation (MCK).

For long-horizon retirement investors, Cardinal Health, Inc.

(CAH) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 03), 1. 1% yield, +174. 5% 10Y return). Both have compounded well over 10 years (CAH: +174. 5%, PRGO: -76. 8%), 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.

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: PRGO is a small-cap income-oriented stock; JNJ is a large-cap quality compounder stock; MCK is a mid-cap high-growth stock; CAH is a mid-cap quality compounder stock. PRGO, JNJ, CAH pay 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.