The Ensign Group Inc (ENSG)vsMerck & Company Inc (MRK)
ENSG
The Ensign Group Inc
$173.98
+0.69%
HEALTHCARE · Cap: $9.94B
MRK
Merck & Company Inc
$143.93
-0.54%
HEALTHCARE · Cap: $355.10B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 1113% more annual revenue ($66.57B vs $5.49B). ENSG leads profitability with a 6.9% profit margin vs 4.8%. ENSG appears more attractively valued with a PEG of 1.35. ENSG earns a higher WallStSmart Score of 61/100 (C+).
ENSG
Buy61
out of 100
Grade: C+
MRK
Hold36
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-39.8%
Fair Value
$151.59
Current Price
$173.98
$22.39 premium
Margin of Safety
-73.7%
Fair Value
$82.84
Current Price
$143.93
$61.09 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
17.3% revenue growth
Mega-cap, among the largest globally
Generating 4.5B in free cash flow
Areas to Watch
Moderate valuation
6.9% margin — thin
Trading at 8.5x book value
ROE of 7.6% — below average capital efficiency
4.8% margin — thin
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : ENSG
The strongest argument for ENSG centers on Revenue Growth. Revenue growth of 17.3% demonstrates continued momentum. PEG of 1.35 suggests the stock is reasonably priced for its growth.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Free Cash Flow.
Bear Case : ENSG
The primary concerns for ENSG are P/E Ratio, Profit Margin.
Bear Case : MRK
The primary concerns for MRK are Price/Book, Return on Equity, Profit Margin. A P/E of 116.1x leaves little room for execution misses. Thin 4.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
ENSG profiles as a growth stock while MRK is a value play — different risk/reward profiles.
ENSG carries more volatility with a beta of 0.69 — expect wider price swings.
ENSG is growing revenue faster at 17.3% — sustainability is the question.
MRK generates stronger free cash flow (4.5B), providing more financial flexibility.
Bottom Line
ENSG scores higher overall (61/100 vs 36/100) and 17.3% revenue growth. Both earn "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.
The Ensign Group Inc
HEALTHCARE · MEDICAL CARE FACILITIES · USA
The Ensign Group, Inc. provides health care services in the post-acute care continuum and other ancillary businesses. The company is headquartered in San Juan Capistrano, California.
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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