HealthEquity Inc (HQY)vsMerck & Company Inc (MRK)
HQY
HealthEquity Inc
$81.48
+0.37%
HEALTHCARE · Cap: $6.97B
MRK
Merck & Company Inc
$110.95
+0.84%
HEALTHCARE · Cap: $276.38B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 4850% more annual revenue ($65.01B vs $1.31B). MRK leads profitability with a 28.1% profit margin vs 16.4%. HQY appears more attractively valued with a PEG of 1.19. HQY earns a higher WallStSmart Score of 66/100 (B-).
HQY
Strong Buy66
out of 100
Grade: B-
MRK
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+54.7%
Fair Value
$169.68
Current Price
$81.48
$88.20 discount
Margin of Safety
-15.1%
Fair Value
$96.48
Current Price
$110.95
$14.47 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 92.4% YoY
Strong operational efficiency at 21.6%
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
Premium valuation, high expectations priced in
Weak financial health signals
Expensive relative to growth rate
Earnings declined 19.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : HQY
The strongest argument for HQY centers on EPS Growth, Operating Margin. Profitability is solid with margins at 16.4% and operating margin at 21.6%. PEG of 1.19 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 : HQY
The primary concerns for HQY are P/E Ratio.
Bear Case : MRK
The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
HQY profiles as a mature stock while MRK is a value play — different risk/reward profiles.
MRK carries more volatility with a beta of 0.28 — expect wider price swings.
HQY is growing revenue faster at 7.3% — sustainability is the question.
MRK generates stronger free cash flow (1.8B), providing more financial flexibility.
Bottom Line
HQY scores higher overall (66/100 vs 59/100), backed by strong 16.4% margins. Both earn "Strong 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.
HealthEquity Inc
HEALTHCARE · HEALTH INFORMATION SERVICES · USA
HealthEquity, Inc. provides technology-enabled service platforms to consumers and employers in the United States. The company is headquartered in Draper, Utah.
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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