WallStSmart

Molina Healthcare Inc (MOH)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 53% more annual revenue ($65.77B vs $43.10B). MRK leads profitability with a 13.6% profit margin vs 0.4%. MOH appears more attractively valued with a PEG of 1.87. MRK earns a higher WallStSmart Score of 50/100 (D+).

MOH

Hold

44

out of 100

Grade: D

Growth: 4.0Profit: 4.0Value: 3.7Quality: 7.0
Piotroski: 4/9Altman Z: 4.01

MRK

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 8.0Value: 2.7Quality: 5.0
Piotroski: 3/9Altman Z: 2.30
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for MOH.

MRKSignificantly Overvalued (-49.3%)

Margin of Safety

-49.3%

Fair Value

$80.88

Current Price

$120.79

$39.91 premium

UndervaluedFair: $80.88Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MOH3 strengths · Avg: 8.7/10
Altman Z-ScoreHealth
4.0110/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$1.05B8/10

Generating 1.1B in free cash flow

MRK3 strengths · Avg: 9.3/10
Market CapQuality
$285.64B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
38.6%10/10

Strong operational efficiency at 38.6%

Free Cash FlowQuality
$2.93B8/10

Generating 2.9B in free cash flow

Areas to Watch

MOH4 concerns · Avg: 3.3/10
PEG RatioValuation
1.874/10

Expensive relative to growth rate

Return on EquityProfitability
4.6%3/10

ROE of 4.6% — below average capital efficiency

Profit MarginProfitability
0.4%3/10

0.4% margin — thin

Operating MarginProfitability
1.7%3/10

Operating margin of 1.7%

MRK4 concerns · Avg: 3.5/10
P/E RatioValuation
32.6x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

Debt/EquityHealth
1.073/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : MOH

The strongest argument for MOH centers on Altman Z-Score, Price/Book, Free Cash Flow.

Bull Case : MRK

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

Bear Case : MOH

The primary concerns for MOH are PEG Ratio, Return on Equity, Profit Margin. A P/E of 53.7x leaves little room for execution misses. Thin 0.4% margins leave little buffer for downturns.

Bear Case : MRK

The primary concerns for MRK are P/E Ratio, Revenue Growth, Debt/Equity.

Key Dynamics to Monitor

MOH carries more volatility with a beta of 0.80 — expect wider price swings.

MRK is growing revenue faster at 4.9% — sustainability is the question.

MRK generates stronger free cash flow (2.9B), providing more financial flexibility.

Monitor HEALTHCARE PLANS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MRK scores higher overall (50/100 vs 44/100). 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.

Molina Healthcare Inc

HEALTHCARE · HEALTHCARE PLANS · USA

Molina Healthcare, Inc. provides managed care services to low-income individuals and families under the Medicaid and Medicare programs and through the state insurance marketplaces. The company is headquartered in Long Beach, California.

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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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