WallStSmart

Evolent Health Inc (EVH)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 3074% more annual revenue ($66.57B vs $2.10B). MRK leads profitability with a 4.8% profit margin vs -24.1%. EVH appears more attractively valued with a PEG of 1.93. EVH earns a higher WallStSmart Score of 52/100 (C-).

EVH

Buy

52

out of 100

Grade: C-

Growth: 7.3Profit: 2.0Value: 4.7Quality: 3.5
Piotroski: 4/9Altman Z: -0.57

MRK

Hold

36

out of 100

Grade: F

Growth: 4.0Profit: 4.5Value: 2.0Quality: 5.0
Piotroski: 3/9Altman Z: 2.27
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for EVH.

MRKSignificantly Overvalued (-73.7%)

Margin of Safety

-73.7%

Fair Value

$82.84

Current Price

$143.93

$61.09 premium

UndervaluedFair: $82.84Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EVH2 strengths · Avg: 10.0/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
46.9%10/10

Revenue surging 46.9% year-over-year

MRK2 strengths · Avg: 9.0/10
Market CapQuality
$355.10B10/10

Mega-cap, among the largest globally

Free Cash FlowQuality
$4.48B8/10

Generating 4.5B in free cash flow

Areas to Watch

EVH4 concerns · Avg: 3.3/10
PEG RatioValuation
1.934/10

Expensive relative to growth rate

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$508.77M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-131.8%2/10

ROE of -131.8% — below average capital efficiency

MRK4 concerns · Avg: 3.3/10
Price/BookValuation
8.5x4/10

Trading at 8.5x book value

Return on EquityProfitability
7.6%3/10

ROE of 7.6% — below average capital efficiency

Profit MarginProfitability
4.8%3/10

4.8% margin — thin

Debt/EquityHealth
1.293/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : EVH

The strongest argument for EVH centers on Price/Book, Revenue Growth. Revenue growth of 46.9% demonstrates continued momentum.

Bull Case : MRK

The strongest argument for MRK centers on Market Cap, Free Cash Flow.

Bear Case : EVH

The primary concerns for EVH are PEG Ratio, EPS Growth, Market Cap. Debt-to-equity of 2.53 is elevated, increasing financial risk.

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

EVH profiles as a hypergrowth stock while MRK is a value play — different risk/reward profiles.

EVH carries more volatility with a beta of 0.78 — expect wider price swings.

EVH is growing revenue faster at 46.9% — sustainability is the question.

MRK generates stronger free cash flow (4.5B), providing more financial flexibility.

Bottom Line

EVH scores higher overall (52/100 vs 36/100) and 46.9% 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.

Evolent Health Inc

HEALTHCARE · HEALTH INFORMATION SERVICES · USA

Evolent Health, Inc., through its subsidiary, Evolent Health LLC, provides healthcare delivery and payment solutions in the United States. The company is headquartered in Arlington, Virginia.

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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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