WallStSmart

Laboratory Corporation of America Holdings (LH)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 364% more annual revenue ($66.57B vs $14.35B). LH leads profitability with a 7.0% profit margin vs 4.8%. LH appears more attractively valued with a PEG of 1.28. LH earns a higher WallStSmart Score of 62/100 (C+).

LH

Buy

62

out of 100

Grade: C+

Growth: 6.7Profit: 5.5Value: 4.7Quality: 6.5
Piotroski: 5/9Altman Z: 2.26

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

LHSignificantly Overvalued (-34.6%)

Margin of Safety

-34.6%

Fair Value

$215.41

Current Price

$311.54

$96.13 premium

UndervaluedFair: $215.41Overvalued
MRKSignificantly Overvalued (-73.7%)

Margin of Safety

-73.7%

Fair Value

$82.84

Current Price

$144.85

$62.01 premium

UndervaluedFair: $82.84Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LH2 strengths · Avg: 8.0/10
Price/BookValuation
2.9x8/10

Reasonable price relative to book value

EPS GrowthGrowth
28.2%8/10

Earnings expanding 28.2% YoY

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

LH2 concerns · Avg: 3.5/10
P/E RatioValuation
26.9x4/10

Moderate valuation

Profit MarginProfitability
7.0%3/10

7.0% margin — thin

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 : LH

The strongest argument for LH centers on Price/Book, EPS Growth. PEG of 1.28 suggests the stock is reasonably priced for its growth.

Bull Case : MRK

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

Bear Case : LH

The primary concerns for LH are P/E Ratio, Profit Margin.

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

LH carries more volatility with a beta of 0.85 — expect wider price swings.

LH is growing revenue faster at 5.8% — sustainability is the question.

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

Monitor DIAGNOSTICS & RESEARCH industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LH scores higher overall (62/100 vs 36/100). 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.

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.

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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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