WallStSmart

HealthStream Inc (HSTM)vsMerck & Company Inc (MRK)

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Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 20445% more annual revenue ($67.38B vs $327.95M). HSTM leads profitability with a 6.3% profit margin vs 3.6%. MRK appears more attractively valued with a PEG of 2.82. MRK earns a higher WallStSmart Score of 44/100 (D).

HSTM

Hold

41

out of 100

Grade: D

Growth: 4.0Profit: 4.5Value: 3.7Quality: 6.5
Piotroski: 3/9Altman Z: 2.33

MRK

Hold

44

out of 100

Grade: D

Growth: 3.3Profit: 6.5Value: 2.0Quality: 5.0
Piotroski: 3/9Altman Z: 2.27
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for HSTM.

MRKSignificantly Overvalued (-72.9%)

Margin of Safety

-72.9%

Fair Value

$84.87

Current Price

$146.99

$62.12 premium

UndervaluedFair: $84.87Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HSTM2 strengths · Avg: 9.0/10
Debt/EquityHealth
0.0310/10

Conservative balance sheet, low leverage

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

MRK3 strengths · Avg: 9.3/10
Market CapQuality
$368.89B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
41.2%10/10

Strong operational efficiency at 41.2%

Free Cash FlowQuality
$5.52B8/10

Generating 5.5B in free cash flow

Areas to Watch

HSTM4 concerns · Avg: 3.0/10
Market CapQuality
$993.75M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
5.1%3/10

ROE of 5.1% — below average capital efficiency

Profit MarginProfitability
6.3%3/10

6.3% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

MRK4 concerns · Avg: 3.5/10
Price/BookValuation
8.7x4/10

Trading at 8.7x book value

Revenue GrowthGrowth
4.7%4/10

4.7% revenue growth

Return on EquityProfitability
5.5%3/10

ROE of 5.5% — below average capital efficiency

Profit MarginProfitability
3.6%3/10

3.6% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : HSTM

The strongest argument for HSTM centers on Debt/Equity, Price/Book.

Bull Case : MRK

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

Bear Case : HSTM

The primary concerns for HSTM are Market Cap, Return on Equity, Profit Margin. A P/E of 46.4x leaves little room for execution misses.

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

HSTM carries more volatility with a beta of 0.43 — expect wider price swings.

HSTM is growing revenue faster at 8.9% — sustainability is the question.

MRK generates stronger free cash flow (5.5B), providing more financial flexibility.

Monitor HEALTH INFORMATION SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MRK scores higher overall (44/100 vs 41/100). Both earn "Hold" 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.

HealthStream Inc

HEALTHCARE · HEALTH INFORMATION SERVICES · USA

HealthStream, Inc. provides provider and staff solutions for healthcare organizations in the United States. The company is headquartered in Nashville, Tennessee.

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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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