MCK (Mckesson Corp) vs S&P 500 Comparison

MCK

S&P 500

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MCK

S&P 500

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MCK

S&P 500

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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S&P 500

MCK

COR

0HF3

CAH

HSIC

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Mckesson Corp
Glance View

Economic Moat

Narrow

Market Cap

75B USD

Industry

Health Care

McKesson Corporation, with its roots tracing back to 1833, stands as a healthcare titan in the pharmaceutical industry. Founded by John McKesson and Charles Olcott in New York City, the company began its journey as an importer and wholesaler of botanical drugs. McKesson has since evolved into one of the largest healthcare companies in the world, delivering critical logistics and distribution services that underpin the healthcare sector. The company's primary role is that of an intermediary, ensuring that pharmaceutical products and medical supplies make their way efficiently from manufacturers to pharmacies, hospitals, and clinics. This pivotal position places McKesson at the heart of the supply chain, making health products more accessible and affordable across North America and beyond. The operational mechanics of McKesson are a complex yet seamless orchestration of advanced logistics, technology, and customer service. By maintaining a vast network of distribution centers, the corporation processes and ships millions of pharmaceutical products daily, ensuring they are delivered within stringent timeframes. Through its well-oiled logistics system, McKesson earns its revenue mainly from the margins on product sales and the fees it charges for its distribution services. Furthermore, the company has diversified into additional areas like healthcare technology solutions, offering software and automation systems that aid healthcare providers in managing their operations more effectively. In summary, McKesson remains an indispensable player in healthcare, translating logistical prowess into a streamlined flow of pharmaceuticals from production to patient care.

View MCK Analysis

MCK Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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KR		Celltrion Healthcare Co Ltd KOSDAQ:091990	Add
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CN		Shanghai Pharmaceuticals Holding Co Ltd SSE:601607	Add
CN		Huadong Medicine Co Ltd SZSE:000963	Add
IT		Amplifon SpA MIL:AMP	Add
DE	M	McKesson Europe AG XHAM:CLS1	Add

US		Cencora Inc NYSE:COR	Select
US	A	Amerisourcebergen Corp LSE:0HF3	Select
US		Cardinal Health Inc NYSE:CAH	Select
US		Henry Schein Inc NASDAQ:HSIC	Select
KR		Celltrion Healthcare Co Ltd KOSDAQ:091990	Select
CN		Sinopharm Group Co Ltd HKEX:1099	Select
CN		Shanghai Pharmaceuticals Holding Co Ltd SSE:601607	Select
CN		Huadong Medicine Co Ltd SZSE:000963	Select
IT		Amplifon SpA MIL:AMP	Select
DE	M	McKesson Europe AG XHAM:CLS1	Select

US		Cencora Inc NYSE:COR	Add
US	A	Amerisourcebergen Corp LSE:0HF3	Add
US		Cardinal Health Inc NYSE:CAH	Add
US		Henry Schein Inc NASDAQ:HSIC	Add
KR		Celltrion Healthcare Co Ltd KOSDAQ:091990	Add
CN		Sinopharm Group Co Ltd HKEX:1099	Add
CN		Shanghai Pharmaceuticals Holding Co Ltd SSE:601607	Add
CN		Huadong Medicine Co Ltd SZSE:000963	Add
IT		Amplifon SpA MIL:AMP	Add
DE	M	McKesson Europe AG XHAM:CLS1	Add

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MCK

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S&P 500

Stocks Performance
MCK vs S&P 500

Performance Gap
MCK vs S&P 500

Performance By Year
MCK vs S&P 500

Competitors Performance
Mckesson Corp vs Peers

Mckesson Corp
Glance View

Company

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MCK vs S&P 500

Stocks Performance MCK vs S&P 500

Performance Gap MCK vs S&P 500

Performance By Year MCK vs S&P 500

Competitors Performance Mckesson Corp vs Peers

Mckesson Corp Glance View

Company

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Stocks

MCK

vs

S&P 500

Stocks Performance
MCK vs S&P 500

Performance Gap
MCK vs S&P 500

Performance By Year
MCK vs S&P 500

Competitors Performance
Mckesson Corp vs Peers

Mckesson Corp
Glance View