Molina Healthcare Inc (MOH)vsMerck & Company Inc (MRK)
MOH
Molina Healthcare Inc
$196.49
+5.95%
HEALTHCARE · Cap: $10.24B
MRK
Merck & Company Inc
$109.18
-1.60%
HEALTHCARE · Cap: $274.03B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 51% more annual revenue ($65.01B vs $43.10B). MRK leads profitability with a 28.1% profit margin vs 0.4%. MOH appears more attractively valued with a PEG of 1.78. MRK earns a higher WallStSmart Score of 59/100 (C).
MOH
Hold44
out of 100
Grade: D
MRK
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for MOH.
Margin of Safety
-13.2%
Fair Value
$96.48
Current Price
$109.18
$12.70 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Generating 1.1B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 37 in profit
Strong operational efficiency at 32.8%
Keeps 28 of every $100 in revenue as profit
Attractively priced relative to earnings
Generating 1.8B in free cash flow
Areas to Watch
Expensive relative to growth rate
ROE of 4.5% — below average capital efficiency
0.4% margin — thin
Operating margin of 1.7%
Weak financial health signals
Expensive relative to growth rate
Earnings declined 19.3%
Comparative Analysis Report
WallStSmart ResearchBull 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, Return on Equity, Operating Margin. Profitability is solid with margins at 28.1% and operating margin at 32.8%.
Bear Case : MOH
The primary concerns for MOH are PEG Ratio, Return on Equity, Profit Margin. A P/E of 52.7x leaves little room for execution misses. Thin 0.4% margins leave little buffer for downturns.
Bear Case : MRK
The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
MOH carries more volatility with a beta of 0.55 — expect wider price swings.
MRK is growing revenue faster at 5.0% — sustainability is the question.
MRK generates stronger free cash flow (1.8B), providing more financial flexibility.
Monitor HEALTHCARE PLANS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MRK scores higher overall (59/100 vs 44/100), backed by strong 28.1% margins. 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.
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.
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.
Visit Website →Compare with Other HEALTHCARE PLANS Stocks
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