Between McKesson and Cardinal Health, Which Stock Looks Set to Break Out?
Cardinal Health surged 34% during the past Month. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer McKesson gives you more. McKesson (MCK) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Cardinal Health (CAH) stock, suggesting you may be better off investing in MCK
- MCK’s quarterly revenue growth was 10.1%, vs. CAH’s 0.5%.
- In addition, its Last 12 Months revenue growth came in at 17.2%, ahead of CAH’s -1.9%.
- MCK leads on profitability over both periods – LTM margin of 1.4% and 3-year average of 1.4%.
These differences become even clearer when you look at the financials side by side. The data highlights how CAH’s fundamentals stack up against those of MCK on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| CAH | MCK | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 21.0 | 19.1 | MCK |
| Revenue Growth | |||
| Last Quarter | 0.5% | 10.1% | MCK |
| Last 12 Months | -1.9% | 17.2% | MCK |
| Last 3 Year Average | 7.3% | 12.6% | MCK |
| Operating Margins | |||
| Last 12 Months | 1.0% | 1.4% | MCK |
| Last 3 Year Average | 1.0% | 1.4% | MCK |
| Momentum | |||
| Last 3 Year Return | 189.4% | 135.1% | CAH |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: CAH Revenue Comparison | MCK Revenue Comparison
See more margin details: CAH Operating Income Comparison | MCK Operating Income Comparison
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You can see detailed fundamentals on Buy or Sell MCK Stock and Buy or Sell CAH Stock and assess yourself which stock looks better. Nevertheless, individual stocks can soar or tank but one thing matters: staying invested. High Quality Portfolio helps you do that.
Getting back to comparison, let’s check out how these two stocks have performed for investors in the last few years.
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| CAH Return | 10% | -0% | 54% | 34% | 19% | 76% | 375% | ||
| MCK Return | 27% | 44% | 52% | 24% | 24% | 48% | 532% | <=== | |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 14% | 108% | ||
| Monthly Win Rates [3] | |||||||||
| CAH Win Rate | 50% | 42% | 67% | 58% | 50% | 80% | 58% | ||
| MCK Win Rate | 42% | 67% | 67% | 75% | 75% | 80% | 68% | <=== | |
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 70% | 64% | ||
| Max Drawdowns [4] | |||||||||
| CAH Max Drawdown | -19% | -12% | -2% | -10% | -6% | 0% | -8% | ||
| MCK Max Drawdown | -16% | -3% | -2% | -10% | 0% | -1% | -5% | <=== | |
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | ||
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 11/14/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
Whatever your view on either of these stocks, investing in one or two stocks remains a risky proposition. Instead, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.