WallStSmart

Mednax Inc (MD)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 3313% more annual revenue ($66.57B vs $1.95B). MD leads profitability with a 9.0% profit margin vs 4.8%. MD appears more attractively valued with a PEG of 0.24. MD earns a higher WallStSmart Score of 63/100 (C+).

MD

Buy

63

out of 100

Grade: C+

Growth: 4.0Profit: 6.5Value: 9.3Quality: 5.5
Piotroski: 5/9Altman Z: 1.71

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

MDUndervalued (+65.0%)

Margin of Safety

+65.0%

Fair Value

$61.35

Current Price

$26.35

$35.00 discount

UndervaluedFair: $61.35Overvalued
MRKSignificantly Overvalued (-77.2%)

Margin of Safety

-77.2%

Fair Value

$83.04

Current Price

$150.91

$67.87 premium

UndervaluedFair: $83.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MD3 strengths · Avg: 8.7/10
PEG RatioValuation
0.2410/10

Growing faster than its price suggests

P/E RatioValuation
12.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

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

MD2 concerns · Avg: 4.0/10
Revenue GrowthGrowth
4.0%4/10

4.0% revenue growth

Altman Z-ScoreHealth
1.714/10

Distress zone — elevated risk

MRK4 concerns · Avg: 3.3/10
Price/BookValuation
8.9x4/10

Trading at 8.9x 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 : MD

The strongest argument for MD centers on PEG Ratio, P/E Ratio, Price/Book. PEG of 0.24 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 : MD

The primary concerns for MD are Revenue Growth, Altman Z-Score.

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

MD carries more volatility with a beta of 0.65 — expect wider price swings.

MRK is growing revenue faster at 5.1% — sustainability is the question.

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

Monitor MEDICAL CARE FACILITIES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MD scores higher overall (63/100 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.

Mednax Inc

HEALTHCARE · MEDICAL CARE FACILITIES · USA

MEDNAX, Inc., provides neonatal, maternal-fetal, pediatric cardiology, and other pediatric subspecialties in the United States and Puerto Rico. The company is headquartered in Sunrise, Florida.

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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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