CVS Health Corp (CVS)vsMerck & Company Inc (MRK)
CVS
CVS Health Corp
$70.08
-1.55%
HEALTHCARE · Cap: $89.16B
MRK
Merck & Company Inc
$119.63
-1.28%
HEALTHCARE · Cap: $295.77B
Smart Verdict
WallStSmart Research — data-driven comparison
CVS Health Corp generates 515% more annual revenue ($399.83B vs $65.01B). MRK leads profitability with a 28.1% profit margin vs 0.4%. CVS appears more attractively valued with a PEG of 0.20. CVS earns a higher WallStSmart Score of 65/100 (C+).
CVS
Buy65
out of 100
Grade: C+
MRK
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-18.4%
Fair Value
$65.05
Current Price
$70.08
$5.03 premium
Margin of Safety
-141.3%
Fair Value
$49.57
Current Price
$119.63
$70.06 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 76.6% YoY
Large-cap with strong market position
Generating 2.6B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 37 in profit
Strong operational efficiency at 32.8%
Keeps 28 of every $100 in revenue as profit
Attractively priced relative to earnings
Generating 1.8B in free cash flow
Areas to Watch
ROE of 2.3% — below average capital efficiency
0.4% margin — thin
Operating margin of 1.6%
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Earnings declined 19.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : CVS
The strongest argument for CVS centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.20 suggests the stock is reasonably priced for its growth.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 28.1% and operating margin at 32.8%.
Bear Case : CVS
The primary concerns for CVS are Return on Equity, Profit Margin, Operating Margin. A P/E of 50.4x leaves little room for execution misses. Thin 0.4% margins leave little buffer for downturns.
Bear Case : MRK
The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
CVS carries more volatility with a beta of 0.46 — expect wider price swings.
CVS is growing revenue faster at 8.4% — sustainability is the question.
CVS generates stronger free cash flow (2.6B), providing more financial flexibility.
Monitor HEALTHCARE PLANS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CVS scores higher overall (65/100 vs 59/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
CVS Health Corp
HEALTHCARE · HEALTHCARE PLANS · USA
CVS Health (previously CVS Corporation and CVS Caremark Corporation) is an American healthcare company that owns CVS Pharmacy, a retail pharmacy chain; CVS Caremark, a pharmacy benefits manager; Aetna, a health insurance provider, among many other brands. The company's headquarters is in Woonsocket, Rhode Island.
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.
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