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CAH vs MCK
Which Stock Would AI Choose? Cardinal Health (CAH) vs. McKesson (MCK) Stock Comparison
Key Takeaways
- Cardinal Health (CAH) reported fiscal 2026 revenue of $254.2 billion and non-GAAP (non-generally accepted accounting principles) EPS (earnings per share) of $11.26, up 37% year over year.
- McKesson (MCK) is the larger of the two, with fiscal 2026 revenue of roughly $403 billion, and raised its fiscal 2027 adjusted EPS guidance to a range of $44.20 to $45.00.
- CAH trades at a modestly lower forward valuation and has shown stronger recent momentum and earnings-estimate revision trends.
- MCK commands a broader oncology and biopharma-services footprint and greater scale, but its shares have consolidated after a multi-year run.
- Both companies guide for roughly 13% to 15% earnings growth in their current fiscal years, reflecting durable pharmaceutical-distribution demand.
Introduction
Cardinal Health and McKesson are two of the largest pharmaceutical distribution and healthcare-services companies in the United States, and they compete directly for pharmacy, hospital, and specialty-provider business. This stock comparison is relevant for investors and traders evaluating relative performance, market positioning, and growth quality within the same defensive healthcare sector. Because the two names operate at different scales, run on different fiscal calendars, and have distinct strategic priorities, comparing their recent results helps clarify where momentum, valuation, and catalysts currently diverge. The analysis below focuses on observable developments from recent weeks and quarters, rather than short-term price moves.
CAH Overview and Recent Performance
CAH, or Cardinal Health, distributes branded and generic pharmaceuticals, manufactures and distributes medical products, and operates higher-growth businesses including nuclear and precision health solutions, at-home solutions, and logistics. In its fiscal fourth quarter, revenue rose 6% to $63.7 billion, while non-GAAP diluted EPS climbed 40% to $2.91, aided by stronger segment performance and tariff refunds. Full-year fiscal 2026 revenue reached $254.2 billion, and management issued fiscal 2027 non-GAAP EPS guidance of $12.40 to $12.60, implying 13% to 15% growth.
Recent market activity has reflected this earnings momentum. The stock moved to a 52-week high in recent weeks before consolidating, and the sell-side consensus remains a "Buy" with an average price target around $271. Sentiment has been supported by specialty pharmaceutical growth, an expanding nuclear medicine platform, share repurchases, and a steady dividend, though modest top-line shortfalls in the quarter and tariff-related dynamics remain points of watch.
MCK Overview and Recent Performance
MCK, or McKesson, operates across North American pharmaceutical distribution, oncology and multispecialty services, prescription technology solutions, and medical-surgical solutions. In fiscal 2026, revenue grew about 12% to roughly $403 billion, with adjusted EPS up about 18% to $39.11. For fiscal 2027, management raised adjusted EPS guidance to $44.20 to $45.00, and first-quarter adjusted EPS of $9.93 rose about 20%, supported by double-digit growth in three of its four segments.
Strategically, McKesson continues to deepen its oncology ecosystem through its U.S. Oncology Network, Sarah Cannon Research Institute, and the pending Precision Medicine Group acquisition, while advancing the planned separation of its Medical-Surgical Solutions segment. In recent market activity, however, the stock has pulled back modestly after a strong multi-year advance, with investors weighing policy uncertainty, thin distribution margins, and valuation against the company's specialty-led growth. Long-term total shareholder returns remain substantial.
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Head-to-Head Comparison
The most visible contrast is scale versus momentum. McKesson generates roughly 60% more annual revenue than Cardinal Health and has built a more diversified, technology-enabled oncology and biopharma-services platform, including a network of more than 3,400 oncology providers. Cardinal Health, by contrast, is more concentrated in pharmaceutical distribution and medical products, but has leaned into higher-margin growth businesses such as nuclear medicine and at-home solutions.
On valuation, CAH trades at a forward P/E (price-to-earnings ratio) around 17.5, modestly below MCK's roughly 18.7, while also carrying a stronger recent momentum profile and steadier estimate-revision trend. MCK offers greater scale and a more expansive specialty platform, but faces ongoing complexity from its Medical-Surgical separation, drug-pricing policy, and a higher absolute share price. Risk factors for both include thin operating margins, generic-drug pricing deflation, regulatory and tariff exposure, and litigation; MCK additionally carries near-term integration and separation execution risk.
Tickeron AI Verdict
Based on observable factors such as trend consistency, valuation, earnings-estimate momentum, and relative positioning, Tickeron's AI would likely lean toward CAH in the current environment. Cardinal Health has demonstrated a steadier recent momentum trend, a lower forward valuation, and stronger earnings-estimate revision activity, even as McKesson maintains advantages in scale, specialty breadth, and long-term franchise quality. The preference is probabilistic rather than definitive: if McKesson's oncology and biopharma-services catalysts re-accelerate or its Medical-Surgical separation resolves favorably, relative positioning could shift. Investors should weigh these trade-offs against their own objectives and time horizon.
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.
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 StrongBuy and MCK is a StrongBuy.
CAH | MCK | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 65 | 73 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 66 Overvalued | 12 Undervalued | |
PROFIT vs RISK RATING 1..100 | 4 | 13 | |
SMR RATING 1..100 | 99 | 100 | |
PRICE GROWTH RATING 1..100 | 46 | 45 | |
P/E GROWTH RATING 1..100 | 19 | 69 | |
SEASONALITY SCORE 1..100 | n/a | 49 |
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 (12) in the Medical Distributors industry is somewhat better than the same rating for CAH (66). This means that MCK’s stock grew somewhat faster than CAH’s over the last 12 months.
CAH's Profit vs Risk Rating (4) in the Medical Distributors industry is in the same range as MCK (13). This means that CAH’s stock grew similarly to MCK’s over the last 12 months.
CAH's SMR Rating (99) 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.
MCK's Price Growth Rating (45) in the Medical Distributors industry is in the same range as CAH (46). This means that MCK’s stock grew similarly to CAH’s over the last 12 months.
CAH's P/E Growth Rating (19) in the Medical Distributors industry is somewhat better than the same rating for MCK (69). This means that CAH’s stock grew somewhat faster than MCK’s over the last 12 months.
| CAH | MCK | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 70% | N/A |
| Stochastic ODDS (%) | 1 day ago 69% | 1 day ago 76% |
| Momentum ODDS (%) | 1 day ago 73% | 1 day ago 65% |
| MACD ODDS (%) | 1 day ago 81% | 1 day ago 45% |
| TrendWeek ODDS (%) | 1 day ago 67% | 1 day ago 66% |
| TrendMonth ODDS (%) | 1 day ago 40% | 1 day ago 45% |
| Advances ODDS (%) | 5 days ago 67% | 1 day ago 67% |
| Declines ODDS (%) | 11 days ago 42% | 6 days ago 42% |
| BollingerBands ODDS (%) | 1 day ago 54% | N/A |
| Aroon ODDS (%) | N/A | 1 day ago 44% |
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 overvalued. 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 2 FA rating(s) are green while MCK’s FA Score has 2 green FA rating(s).
- CAH’s FA Score: 2 green, 3 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 5 TA indicator(s) are bullish while MCK’s TA Score has 5 bullish TA indicator(s).
- CAH’s TA Score: 5 bullish, 4 bearish.
- MCK’s TA Score: 5 bullish, 4 bearish.
Price Growth
CAH (@Medical Distributors) experienced а +3.91% price change this week, while MCK (@Medical Distributors) price change was +4.11% for the same time period.
The average weekly price growth across all stocks in the @Medical Distributors industry was +1.42%. For the same industry, the average monthly price growth was -1.17%, and the average quarterly price growth was -19.24%.
Reported Earning Dates
CAH is expected to report earnings on Nov 05, 2026.
MCK is expected to report earnings on Nov 04, 2026.
Industries' Descriptions
@Medical Distributors (+1.42% 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.
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CAH and
Correlation & Price change
A.I.dvisor indicates that over the last year, CAH has been loosely correlated with MCK. These tickers have moved in lockstep 65% of the time. This A.I.-generated data suggests there is some statistical probability that if CAH jumps, then MCK could also see price increases.
| Ticker / NAME | Correlation To CAH | 1D Price Change % | ||
|---|---|---|---|---|
| CAH | 100% | -0.78% | ||
| MCK - CAH | 65% Loosely correlated | +0.38% | ||
| COR - CAH | 57% Loosely correlated | -0.24% | ||
| HSIC - CAH | 11% Poorly correlated | -0.06% | ||
| AHG - CAH | 5% Poorly correlated | +12.75% | ||
| FOCL - CAH | 4% Poorly correlated | -2.78% | ||
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MCK and
Correlation & Price change
A.I.dvisor indicates that over the last year, MCK has been closely correlated with COR. These tickers have moved in lockstep 71% of the time. This A.I.-generated data suggests there is a high statistical probability that if MCK jumps, then COR could also see price increases.
| Ticker / NAME | Correlation To MCK | 1D Price Change % | ||
|---|---|---|---|---|
| MCK | 100% | +0.38% | ||
| COR - MCK | 71% Closely correlated | -0.24% | ||
| CAH - MCK | 66% Closely correlated | -0.78% | ||
| HSIC - MCK | 12% Poorly correlated | -0.06% | ||
| HKPD - MCK | 10% Poorly correlated | -2.06% | ||
| FOCL - MCK | 7% Poorly correlated | -2.78% | ||
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