Laboratory Corporation of America Holdings (LH)vsMerck & Company Inc (MRK)
LH
Laboratory Corporation of America Holdings
$265.15
+1.60%
HEALTHCARE · Cap: $21.83B
MRK
Merck & Company Inc
$120.79
-1.42%
HEALTHCARE · Cap: $285.64B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 365% more annual revenue ($65.77B vs $14.14B). MRK leads profitability with a 13.6% profit margin vs 6.7%. LH appears more attractively valued with a PEG of 1.13. LH earns a higher WallStSmart Score of 67/100 (B-).
LH
Strong Buy67
out of 100
Grade: B-
MRK
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-38.9%
Fair Value
$208.66
Current Price
$265.15
$56.49 premium
Margin of Safety
-49.3%
Fair Value
$80.88
Current Price
$120.79
$39.91 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 32.9% YoY
Mega-cap, among the largest globally
Strong operational efficiency at 38.6%
Generating 2.9B in free cash flow
Areas to Watch
6.7% margin — thin
Premium valuation, high expectations priced in
4.9% revenue growth
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : LH
The strongest argument for LH centers on Price/Book, EPS Growth. PEG of 1.13 suggests the stock is reasonably priced for its growth.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bear Case : LH
The primary concerns for LH are Profit Margin.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Debt/Equity.
Key Dynamics to Monitor
LH carries more volatility with a beta of 0.88 — expect wider price swings.
LH is growing revenue faster at 5.8% — sustainability is the question.
MRK generates stronger free cash flow (2.9B), providing more financial flexibility.
Monitor DIAGNOSTICS & RESEARCH industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LH scores higher overall (67/100 vs 50/100). Both earn "Strong 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.
Laboratory Corporation of America Holdings
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Laboratory Corporation of America Holdings, more commonly known as Labcorp, is an American company headquartered in Burlington, North Carolina. It operates one of the largest clinical laboratory networks in the world, with a United States network of 36 primary laboratories.
Visit Website →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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