The Ensign Group Inc (ENSG)vsMerck & Company Inc (MRK)
ENSG
The Ensign Group Inc
$203.89
+0.48%
HEALTHCARE · Cap: $11.85B
MRK
Merck & Company Inc
$119.37
+2.58%
HEALTHCARE · Cap: $287.71B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 1185% more annual revenue ($65.01B vs $5.06B). MRK leads profitability with a 28.1% profit margin vs 6.8%. ENSG appears more attractively valued with a PEG of 1.78. MRK earns a higher WallStSmart Score of 59/100 (C).
ENSG
Buy57
out of 100
Grade: C
MRK
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-0.3%
Fair Value
$211.28
Current Price
$203.89
$7.39 premium
Margin of Safety
-141.2%
Fair Value
$49.50
Current Price
$119.37
$69.87 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 20.2% year-over-year
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
Expensive relative to growth rate
Premium valuation, high expectations priced in
6.8% margin — thin
Weak financial health signals
Expensive relative to growth rate
Earnings declined 19.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : ENSG
The strongest argument for ENSG centers on Revenue Growth. Revenue growth of 20.2% demonstrates continued momentum.
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 : ENSG
The primary concerns for ENSG are PEG Ratio, P/E Ratio, Profit Margin.
Bear Case : MRK
The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.
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 0.80 — expect wider price swings.
ENSG is growing revenue faster at 20.2% — sustainability is the question.
MRK generates stronger free cash flow (1.8B), providing more financial flexibility.
Bottom Line
MRK scores higher overall (59/100 vs 57/100), backed by strong 28.1% margins. 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.
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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