WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 57% more annual revenue ($66.57B vs $42.47B). MRK leads profitability with a 4.8% profit margin vs -0.0%. MOH appears more attractively valued with a PEG of 0.93. MOH earns a higher WallStSmart Score of 45/100 (D+).

MOH

Hold

45

out of 100

Grade: D+

Growth: 4.0Profit: 3.0Value: 5.0Quality: 7.0
Piotroski: 5/9Altman Z: 4.01

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

Intrinsic value data unavailable for MOH.

MRKSignificantly Overvalued (-73.7%)

Margin of Safety

-73.7%

Fair Value

$82.84

Current Price

$143.93

$61.09 premium

UndervaluedFair: $82.84Overvalued

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

PEG RatioValuation
0.938/10

Growing faster than its price suggests

Price/BookValuation
2.5x8/10

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

MOH4 concerns · Avg: 2.3/10
Operating MarginProfitability
1.4%3/10

Operating margin of 1.4%

P/E RatioValuation
1226.9x2/10

Premium valuation, high expectations priced in

Return on EquityProfitability
-0.2%2/10

ROE of -0.2% — below average capital efficiency

Revenue GrowthGrowth
-5.7%2/10

Revenue declined 5.7%

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 : MOH

The strongest argument for MOH centers on Altman Z-Score, PEG Ratio, Price/Book. PEG of 0.93 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 : MOH

The primary concerns for MOH are Operating Margin, P/E Ratio, Return on Equity. A P/E of 1226.9x leaves little room for execution misses.

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

MOH profiles as a turnaround stock while MRK is a value play — different risk/reward profiles.

MOH carries more volatility with a beta of 0.76 — 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.

Bottom Line

MOH scores higher overall (45/100 vs 36/100). 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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