Merck & Company Inc (MRK)vsSelect Medical Holdings (SEM)
MRK
Merck & Company Inc
$120.79
-1.42%
HEALTHCARE · Cap: $285.64B
SEM
Select Medical Holdings
$16.54
+0.30%
HEALTHCARE · Cap: $2.07B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 1091% more annual revenue ($65.77B vs $5.52B). MRK leads profitability with a 13.6% profit margin vs 2.4%. SEM appears more attractively valued with a PEG of 2.26. SEM earns a higher WallStSmart Score of 50/100 (C-).
MRK
Hold50
out of 100
Grade: D+
SEM
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-49.3%
Fair Value
$80.88
Current Price
$120.79
$39.91 premium
Intrinsic value data unavailable for SEM.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 38.6%
Generating 2.9B in free cash flow
Reasonable price relative to book value
Attractively priced relative to earnings
Areas to Watch
Premium valuation, high expectations priced in
4.9% revenue growth
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Distress zone — elevated risk
ROE of 7.6% — below average capital efficiency
2.4% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bull Case : SEM
The strongest argument for SEM centers on Price/Book, P/E Ratio.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Debt/Equity.
Bear Case : SEM
The primary concerns for SEM are PEG Ratio, Altman Z-Score, Return on Equity. Debt-to-equity of 1.70 is elevated, increasing financial risk. Thin 2.4% margins leave little buffer for downturns.
Key Dynamics to Monitor
SEM carries more volatility with a beta of 0.79 — expect wider price swings.
SEM is growing revenue faster at 5.0% — sustainability is the question.
MRK generates stronger free cash flow (2.9B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MRK scores higher overall (50/100 vs 50/100). Both earn "Hold" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
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 →Select Medical Holdings
HEALTHCARE · MEDICAL CARE FACILITIES · USA
Select Medical Holdings Corporation, through its subsidiary, Select Medical Corporation, operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers in the United States. The company is headquartered in Mechanicsburg, Pennsylvania.
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