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GH vs. MCK: A Head-to-Head Stock Comparison

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Here’s a clear look at GH and MCK, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolGHMCK
Company NameGuardant Health, Inc.McKesson Corporation
CountryUnited StatesUnited States
GICS SectorHealth CareHealth Care
GICS IndustryHealth Care Providers & ServicesHealth Care Providers & Services
Market Capitalization7.30 billion USD87.43 billion USD
ExchangeNasdaqGSNYSE
Listing DateOctober 4, 2018November 10, 1994
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of GH and MCK by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

GH vs. MCK: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolGHMCK
5-Day Price Return-3.08%4.32%
13-Week Price Return45.38%-3.23%
26-Week Price Return24.52%16.68%
52-Week Price Return106.13%28.18%
Month-to-Date Return42.75%1.36%
Year-to-Date Return91.49%23.34%
10-Day Avg. Volume3.41M1.00M
3-Month Avg. Volume2.44M0.86M
3-Month Volatility54.92%21.64%
Beta1.530.52

Profitability

Return on Equity (TTM)

GH

-246.60%

Health Care Providers & Services Industry

Max
26.03%
Q3
13.74%
Median
8.26%
Q1
4.13%
Min
-3.62%

GH has a negative Return on Equity of -246.60%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

MCK

39.43%

Health Care Providers & Services Industry

Max
26.03%
Q3
13.74%
Median
8.26%
Q1
4.13%
Min
-3.62%

MCK’s Return on Equity of 39.43% is exceptionally high, placing it well beyond the typical range for the Health Care Providers & Services industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

GH vs. MCK: A comparison of their Return on Equity (TTM) against the Health Care Providers & Services industry benchmark.

Net Profit Margin (TTM)

GH

-49.93%

Health Care Providers & Services Industry

Max
12.40%
Q3
5.93%
Median
1.96%
Q1
0.93%
Min
-6.10%

GH has a negative Net Profit Margin of -49.93%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

MCK

0.92%

Health Care Providers & Services Industry

Max
12.40%
Q3
5.93%
Median
1.96%
Q1
0.93%
Min
-6.10%

Falling into the lower quartile for the Health Care Providers & Services industry, MCK’s Net Profit Margin of 0.92% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

GH vs. MCK: A comparison of their Net Profit Margin (TTM) against the Health Care Providers & Services industry benchmark.

Operating Profit Margin (TTM)

GH

-54.54%

Health Care Providers & Services Industry

Max
19.05%
Q3
10.21%
Median
4.22%
Q1
1.98%
Min
-4.27%

GH has a negative Operating Profit Margin of -54.54%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

MCK

1.23%

Health Care Providers & Services Industry

Max
19.05%
Q3
10.21%
Median
4.22%
Q1
1.98%
Min
-4.27%

MCK’s Operating Profit Margin of 1.23% is in the lower quartile for the Health Care Providers & Services industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

GH vs. MCK: A comparison of their Operating Profit Margin (TTM) against the Health Care Providers & Services industry benchmark.

Profitability at a Glance

SymbolGHMCK
Return on Equity (TTM)-246.60%39.43%
Return on Assets (TTM)-29.04%4.54%
Net Profit Margin (TTM)-49.93%0.92%
Operating Profit Margin (TTM)-54.54%1.23%
Gross Profit Margin (TTM)62.84%3.59%

Financial Strength

Current Ratio (MRQ)

GH

3.71

Health Care Providers & Services Industry

Max
2.01
Q3
1.49
Median
1.30
Q1
0.94
Min
0.17

GH’s Current Ratio of 3.71 is exceptionally high, placing it well outside the typical range for the Health Care Providers & Services industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

MCK

0.90

Health Care Providers & Services Industry

Max
2.01
Q3
1.49
Median
1.30
Q1
0.94
Min
0.17

MCK’s Current Ratio of 0.90 falls into the lower quartile for the Health Care Providers & Services industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

GH vs. MCK: A comparison of their Current Ratio (MRQ) against the Health Care Providers & Services industry benchmark.

Debt-to-Equity Ratio (MRQ)

GH

16.78

Health Care Providers & Services Industry

Max
2.17
Q3
1.18
Median
0.74
Q1
0.45
Min
0.00

With a Debt-to-Equity Ratio of 16.78, GH operates with exceptionally high leverage compared to the Health Care Providers & Services industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

MCK

1.29

Health Care Providers & Services Industry

Max
2.17
Q3
1.18
Median
0.74
Q1
0.45
Min
0.00

MCK’s leverage is in the upper quartile of the Health Care Providers & Services industry, with a Debt-to-Equity Ratio of 1.29. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

GH vs. MCK: A comparison of their Debt-to-Equity Ratio (MRQ) against the Health Care Providers & Services industry benchmark.

Interest Coverage Ratio (TTM)

GH

-150.95

Health Care Providers & Services Industry

Max
14.47
Q3
7.15
Median
5.45
Q1
2.04
Min
-4.44

GH has a negative Interest Coverage Ratio of -150.95. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

MCK

17.45

Health Care Providers & Services Industry

Max
14.47
Q3
7.15
Median
5.45
Q1
2.04
Min
-4.44

With an Interest Coverage Ratio of 17.45, MCK demonstrates a superior capacity to service its debt, placing it well above the typical range for the Health Care Providers & Services industry. This stems from either robust earnings or a conservative debt load.

GH vs. MCK: A comparison of their Interest Coverage Ratio (TTM) against the Health Care Providers & Services industry benchmark.

Financial Strength at a Glance

SymbolGHMCK
Current Ratio (MRQ)3.710.90
Quick Ratio (MRQ)3.190.51
Debt-to-Equity Ratio (MRQ)16.781.29
Interest Coverage Ratio (TTM)-150.9517.45

Growth

Revenue Growth

GH vs. MCK: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

GH vs. MCK: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

GH

0.00%

Health Care Providers & Services Industry

Max
5.38%
Q3
2.22%
Median
0.55%
Q1
0.00%
Min
0.00%

GH currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

MCK

0.40%

Health Care Providers & Services Industry

Max
5.38%
Q3
2.22%
Median
0.55%
Q1
0.00%
Min
0.00%

MCK’s Dividend Yield of 0.40% is consistent with its peers in the Health Care Providers & Services industry, providing a dividend return that is standard for its sector.

GH vs. MCK: A comparison of their Dividend Yield (TTM) against the Health Care Providers & Services industry benchmark.

Dividend Payout Ratio (TTM)

GH

0.00%

Health Care Providers & Services Industry

Max
186.69%
Q3
74.82%
Median
26.76%
Q1
0.00%
Min
0.00%

GH has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

MCK

10.47%

Health Care Providers & Services Industry

Max
186.69%
Q3
74.82%
Median
26.76%
Q1
0.00%
Min
0.00%

MCK’s Dividend Payout Ratio of 10.47% is within the typical range for the Health Care Providers & Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

GH vs. MCK: A comparison of their Dividend Payout Ratio (TTM) against the Health Care Providers & Services industry benchmark.

Dividend at a Glance

SymbolGHMCK
Dividend Yield (TTM)0.00%0.40%
Dividend Payout Ratio (TTM)0.00%10.47%

Valuation

Price-to-Earnings Ratio (TTM)

GH

--

Health Care Providers & Services Industry

Max
55.89
Q3
30.85
Median
21.17
Q1
12.63
Min
0.00

P/E Ratio data for GH is currently unavailable.

MCK

26.24

Health Care Providers & Services Industry

Max
55.89
Q3
30.85
Median
21.17
Q1
12.63
Min
0.00

MCK’s P/E Ratio of 26.24 is within the middle range for the Health Care Providers & Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

GH vs. MCK: A comparison of their Price-to-Earnings Ratio (TTM) against the Health Care Providers & Services industry benchmark.

Price-to-Sales Ratio (TTM)

GH

8.74

Health Care Providers & Services Industry

Max
3.10
Q3
1.74
Median
0.67
Q1
0.24
Min
0.00

With a P/S Ratio of 8.74, GH trades at a valuation that eclipses even the highest in the Health Care Providers & Services industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

MCK

0.24

Health Care Providers & Services Industry

Max
3.10
Q3
1.74
Median
0.67
Q1
0.24
Min
0.00

MCK’s P/S Ratio of 0.24 aligns with the market consensus for the Health Care Providers & Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

GH vs. MCK: A comparison of their Price-to-Sales Ratio (TTM) against the Health Care Providers & Services industry benchmark.

Price-to-Book Ratio (MRQ)

GH

35.72

Health Care Providers & Services Industry

Max
7.61
Q3
4.32
Median
2.53
Q1
1.14
Min
0.77

At 35.72, GH’s P/B Ratio is at an extreme premium to the Health Care Providers & Services industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

MCK

4.06

Health Care Providers & Services Industry

Max
7.61
Q3
4.32
Median
2.53
Q1
1.14
Min
0.77

MCK’s P/B Ratio of 4.06 is within the conventional range for the Health Care Providers & Services industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

GH vs. MCK: A comparison of their Price-to-Book Ratio (MRQ) against the Health Care Providers & Services industry benchmark.

Valuation at a Glance

SymbolGHMCK
Price-to-Earnings Ratio (TTM)--26.24
Price-to-Sales Ratio (TTM)8.740.24
Price-to-Book Ratio (MRQ)35.724.06
Price-to-Free Cash Flow Ratio (TTM)--9.26