Cardinal Health Inc (CAH)vsMerck & Company Inc (MRK)
CAH
Cardinal Health Inc
$237.92
+1.35%
HEALTHCARE · Cap: $54.57B
MRK
Merck & Company Inc
$128.66
+2.56%
HEALTHCARE · Cap: $283.78B
Smart Verdict
WallStSmart Research — data-driven comparison
Cardinal Health Inc generates 281% more annual revenue ($250.74B vs $65.77B). MRK leads profitability with a 13.6% profit margin vs 0.6%. CAH appears more attractively valued with a PEG of 1.44. MRK earns a higher WallStSmart Score of 50/100 (D+).
CAH
Hold47
out of 100
Grade: D+
MRK
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-37.5%
Fair Value
$170.73
Current Price
$237.92
$67.19 premium
Margin of Safety
-40.6%
Fair Value
$80.96
Current Price
$128.66
$47.70 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Generating 1.7B in free cash flow
Mega-cap, among the largest globally
Strong operational efficiency at 38.6%
Generating 2.9B in free cash flow
Areas to Watch
Premium valuation, high expectations priced in
ROE of 0.0% — below average capital efficiency
0.6% margin — thin
Operating margin of 1.4%
Premium valuation, high expectations priced in
4.9% revenue growth
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : CAH
The strongest argument for CAH centers on Debt/Equity, Altman Z-Score, Market Cap. Revenue growth of 11.0% demonstrates continued momentum. PEG of 1.44 suggests the stock is reasonably priced for its growth.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bear Case : CAH
The primary concerns for CAH are P/E Ratio, Return on Equity, Profit Margin. Thin 0.6% margins leave little buffer for downturns.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Debt/Equity.
Key Dynamics to Monitor
CAH carries more volatility with a beta of 0.53 — expect wider price swings.
CAH is growing revenue faster at 11.0% — sustainability is the question.
MRK generates stronger free cash flow (2.9B), providing more financial flexibility.
Monitor MEDICAL DISTRIBUTION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MRK scores higher overall (50/100 vs 47/100). Both earn "Hold" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Cardinal Health Inc
HEALTHCARE · MEDICAL DISTRIBUTION · USA
Cardinal Health, Inc. is an American multinational health care services company.
Visit Website →Merck & Company Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Merck & Co. is an American multinational pharmaceutical company headquartered in Kenilworth, New Jersey. It is named after the Merck family, which set up Merck Group in Germany in 1668.
Visit Website →Compare with Other MEDICAL DISTRIBUTION Stocks
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