DaVita HealthCare Partners Inc (DVA)vsMerck & Company Inc (MRK)
DVA
DaVita HealthCare Partners Inc
$174.07
-5.14%
HEALTHCARE · Cap: $11.67B
MRK
Merck & Company Inc
$146.99
-0.16%
HEALTHCARE · Cap: $368.89B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 376% more annual revenue ($67.38B vs $14.17B). DVA leads profitability with a 6.5% profit margin vs 3.6%. DVA appears more attractively valued with a PEG of 0.47. DVA earns a higher WallStSmart Score of 70/100 (B-).
DVA
Strong Buy70
out of 100
Grade: B-
MRK
Hold44
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-9.6%
Fair Value
$131.65
Current Price
$174.07
$42.42 premium
Margin of Safety
-72.9%
Fair Value
$84.87
Current Price
$146.99
$62.12 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Every $100 of equity generates 81 in profit
Earnings expanding 66.7% YoY
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Mega-cap, among the largest globally
Strong operational efficiency at 41.2%
Generating 5.5B in free cash flow
Areas to Watch
4.6% revenue growth
6.5% margin — thin
Weak financial health signals
Distress zone — elevated risk
Trading at 8.7x book value
4.7% revenue growth
ROE of 5.5% — below average capital efficiency
3.6% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : DVA
The strongest argument for DVA centers on PEG Ratio, Return on Equity, EPS Growth. PEG of 0.47 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 : DVA
The primary concerns for DVA are Revenue Growth, Profit Margin, Piotroski F-Score.
Bear Case : MRK
The primary concerns for MRK are Price/Book, Revenue Growth, Return on Equity. A P/E of 151.0x leaves little room for execution misses. Thin 3.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
DVA carries more volatility with a beta of 0.86 — expect wider price swings.
MRK is growing revenue faster at 4.7% — sustainability is the question.
MRK generates stronger free cash flow (5.5B), providing more financial flexibility.
Monitor MEDICAL CARE FACILITIES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DVA scores higher overall (70/100 vs 44/100). Both earn "Strong Buy" 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.
DaVita HealthCare Partners Inc
HEALTHCARE · MEDICAL CARE FACILITIES · USA
DaVita Inc. provides kidney dialysis services through a network of outpatient dialysis centers in the United States.
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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