WallStSmart

Merck & Company Inc (MRK)vsSurgery Partners Inc (SGRY)

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Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 1878% more annual revenue ($66.57B vs $3.37B). MRK leads profitability with a 4.8% profit margin vs -2.6%. SGRY appears more attractively valued with a PEG of 1.66. SGRY earns a higher WallStSmart Score of 49/100 (D+).

MRK

Hold

36

out of 100

Grade: F

Growth: 4.0Profit: 4.5Value: 2.0Quality: 5.0
Piotroski: 3/9Altman Z: 2.27

SGRY

Hold

49

out of 100

Grade: D+

Growth: 4.7Profit: 4.0Value: 6.3Quality: 4.0
Piotroski: 4/9Altman Z: 0.95
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Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MRKSignificantly Overvalued (-73.7%)

Margin of Safety

-73.7%

Fair Value

$82.84

Current Price

$144.85

$62.01 premium

UndervaluedFair: $82.84Overvalued
SGRYUndervalued (+44.7%)

Margin of Safety

+44.7%

Fair Value

$27.13

Current Price

$14.38

$12.75 discount

UndervaluedFair: $27.13Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

SGRY1 strengths · Avg: 10.0/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Areas to Watch

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

SGRY4 concerns · Avg: 3.8/10
PEG RatioValuation
1.664/10

Expensive relative to growth rate

Revenue GrowthGrowth
2.7%4/10

2.7% revenue growth

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$1.85B3/10

Smaller company, higher risk/reward

Comparative Analysis Report

WallStSmart Research

Bull Case : MRK

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

Bull Case : SGRY

The strongest argument for SGRY centers on Price/Book.

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.

Bear Case : SGRY

The primary concerns for SGRY are PEG Ratio, Revenue Growth, EPS Growth. Debt-to-equity of 2.40 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

SGRY carries more volatility with a beta of 1.92 — 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

SGRY scores higher overall (49/100 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.

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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Surgery Partners Inc

HEALTHCARE · MEDICAL CARE FACILITIES · USA

Surgery Partners, Inc. owns and operates a network of surgical facilities and ancillary services in the United States. The company is headquartered in Brentwood, Tennessee.

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