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CAH vs MCK
Which Stock Would AI Choose? Cardinal Health (CAH) vs. McKesson (MCK) Stock Comparison
Key Takeaways
- CAH has outperformed MCK over the past year with approximately 33% gains compared to MCK's 14%, driven by strong specialty pharmaceutical demand.
- Recent earnings for CAH showed 11% revenue growth and a raised full-year outlook, though shares dipped on a revenue miss.
- MCK, the larger peer by market cap at nearly $99 billion, faces near-term pricing pressures from GLP-1 drugs but holds high analyst targets around $990.
- Both stocks trade at attractive forward P/E ratios under 20, with CAH at 17 and MCK at 18, signaling value in healthcare distribution.
- Analyst consensus favors upside for both, but CAH's recent momentum and guidance lift position it stronger in current market conditions.
- Sector risks like drug pricing and regulatory changes impact relative performance equally.
Introduction
Cardinal Health (CAH) and McKesson (MCK) stand as dominant players in pharmaceutical distribution, serving hospitals, pharmacies, and healthcare providers amid rising demand for specialty drugs and medical supplies. This stock comparison analyzes their recent market positioning, financial metrics, and performance drivers, offering insights for investors tracking healthcare sector trends. Traders focused on value in large-cap distributors or those eyeing relative strength in a volatile market will find value here, as both exhibit resilience but diverge in momentum and catalysts during recent market activity.
CAH Overview and Recent Performance
Cardinal Health (CAH), a leading distributor of pharmaceuticals and medical products, operates through segments like Pharmaceutical and Specialty Solutions and Global Medical Products. In recent weeks, its stock has traded around $197, within a 52-week range of $138 to $234, reflecting volatility but strong yearly gains of over 33%. Key influences include robust Q3 fiscal 2026 results with revenue up 11% to $60.9 billion, driven by specialty pharma growth, though a slight revenue miss tempered enthusiasm. Management raised full-year non-GAAP EPS (earnings per share) guidance to $10.70-$10.80, boosting sentiment on cost efficiencies and demand stability. Analyst targets average $247, signaling potential upside amid broader healthcare tailwinds.
MCK Overview and Recent Performance
McKesson (MCK), the largest U.S. pharmaceutical distributor by revenue, focuses on U.S. Pharmaceutical, Prescription Technology Solutions, and Medical-Surgical segments. Shares recently hover near $805, in a 52-week band of $637 to $999, with year-to-date gains around 2% and 14% over 12 months. Recent market activity shows an 8% pullback over the past month, linked to GLP-1 drug pricing concerns despite solid prior quarters. Q3 fiscal 2026 delivered strong revenue growth of 11% and EPS beats, with ongoing specialty drug momentum. Upcoming Q4 results on May 7 could shift sentiment, supported by analyst targets near $991 and an "Outperform" initiation from William Blair.
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Head-to-Head Comparison
Both CAH and MCK thrive on pharmaceutical wholesale models, distributing generics, brands, and specialties to healthcare networks, but MCK's scale yields higher revenue ($398 billion TTM vs. CAH's $251 billion). Growth drivers overlap in specialty pharma, yet CAH edges recent momentum with 33% yearly returns versus MCK's 14%. Valuation favors value seekers: CAH's forward P/E of 17 undercuts MCK's 18, with lower price-to-sales (0.19 vs. 0.26). Risks include drug pricing reforms and supply chain issues, amplified for MCK by GLP-1 exposure. Market sentiment leans positive for both, though CAH's guidance raise provides nearer-term stability.
Tickeron AI Verdict
Tickeron's AI models currently favor CAH over MCK in relative terms, citing superior trend consistency from recent earnings beats, raised FY2026 guidance, and stronger 12-month price momentum. While MCK offers scale and high targets ahead of Q4 results, CAH's catalysts position it better for short-term outperformance probabilities in the healthcare distribution space.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is CAH is a Buy and MCK is a StrongBuy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
CAH’s FA Score shows that 3 FA rating(s) are green whileMCK’s FA Score has 2 green FA rating(s).
- CAH’s FA Score: 3 green, 2 red.
- MCK’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
CAH’s TA Score shows that 6 TA indicator(s) are bullish while MCK’s TA Score has 5 bullish TA indicator(s).
- CAH’s TA Score: 6 bullish, 4 bearish.
- MCK’s TA Score: 5 bullish, 3 bearish.
Price Growth
CAH (@Medical Distributors) experienced а +8.82% price change this week, while MCK (@Medical Distributors) price change was +1.08% for the same time period.
The average weekly price growth across all stocks in the @Medical Distributors industry was +1.12%. For the same industry, the average monthly price growth was -5.74%, and the average quarterly price growth was -6.17%.
Reported Earning Dates
CAH is expected to report earnings on Aug 18, 2026.
MCK is expected to report earnings on Aug 05, 2026.
Industries' Descriptions
@Medical Distributors (+1.12% weekly)Healthcare distribution market can be segmented into pharmaceutical product distribution services, medical device distribution services, and biopharmaceutical product distribution services. In addition to serving as intermediaries, many medical distributors also purchase and take legal ownership of pharmaceuticals and manage inventory and credit risk. According to a Deloitte report, pharmaceutical distributors’ core services of efficient product distribution, inventory management, financial risk management, and information-sharing generate $33 billion-$53 billion in value annually to the U.S. health care ecosystem. Some prominent players in the overall medical distribution industry include McKesson Corporation, AmerisourceBergen Corporation, Cardinal Health, Inc. and Patterson Companies, Inc.
| CAH | MCK | CAH / MCK | |
| Capitalization | 52.4B | 94.2B | 56% |
| EBITDA | 3.27B | 7.18B | 46% |
| Gain YTD | 9.465 | -4.233 | -224% |
| P/E Ratio | 34.18 | 20.43 | 167% |
| Revenue | 251B | 403B | 62% |
| Total Cash | 3.94B | 3.98B | 99% |
| Total Debt | 8.92B | 8.61B | 104% |
CAH | MCK | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 44 | 26 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 67 Overvalued | 8 Undervalued | |
PROFIT vs RISK RATING 1..100 | 6 | 21 | |
SMR RATING 1..100 | 100 | 100 | |
PRICE GROWTH RATING 1..100 | 18 | 57 | |
P/E GROWTH RATING 1..100 | 25 | 80 | |
SEASONALITY SCORE 1..100 | 18 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
MCK's Valuation (8) in the Medical Distributors industry is somewhat better than the same rating for CAH (67). This means that MCK’s stock grew somewhat faster than CAH’s over the last 12 months.
CAH's Profit vs Risk Rating (6) in the Medical Distributors industry is in the same range as MCK (21). This means that CAH’s stock grew similarly to MCK’s over the last 12 months.
CAH's SMR Rating (100) in the Medical Distributors industry is in the same range as MCK (100). This means that CAH’s stock grew similarly to MCK’s over the last 12 months.
CAH's Price Growth Rating (18) in the Medical Distributors industry is somewhat better than the same rating for MCK (57). This means that CAH’s stock grew somewhat faster than MCK’s over the last 12 months.
CAH's P/E Growth Rating (25) in the Medical Distributors industry is somewhat better than the same rating for MCK (80). This means that CAH’s stock grew somewhat faster than MCK’s over the last 12 months.
| CAH | MCK | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 49% | 3 days ago 71% |
| Stochastic ODDS (%) | 3 days ago 53% | 3 days ago 45% |
| Momentum ODDS (%) | 3 days ago 68% | 3 days ago 55% |
| MACD ODDS (%) | 3 days ago 61% | 3 days ago 71% |
| TrendWeek ODDS (%) | 3 days ago 64% | 3 days ago 64% |
| TrendMonth ODDS (%) | 3 days ago 62% | 3 days ago 67% |
| Advances ODDS (%) | 3 days ago 64% | 5 days ago 65% |
| Declines ODDS (%) | 13 days ago 45% | 3 days ago 42% |
| BollingerBands ODDS (%) | 3 days ago 49% | 5 days ago 76% |
| Aroon ODDS (%) | 3 days ago 58% | 3 days ago 26% |
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CAH and
Correlation & Price change
A.I.dvisor indicates that over the last year, CAH has been closely correlated with MCK. These tickers have moved in lockstep 69% of the time. This A.I.-generated data suggests there is a high statistical probability that if CAH jumps, then MCK could also see price increases.
| Ticker / NAME | Correlation To CAH | 1D Price Change % | ||
|---|---|---|---|---|
| CAH | 100% | +1.22% | ||
| MCK - CAH | 69% Closely correlated | -0.40% | ||
| COR - CAH | 58% Loosely correlated | +0.07% | ||
| HSIC - CAH | 19% Poorly correlated | +1.28% | ||
| FOCL - CAH | 9% Poorly correlated | +0.43% | ||
| YI - CAH | 3% Poorly correlated | +14.25% | ||
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