Merck & Company Inc (MRK)vsSurgery Partners Inc (SGRY)
MRK
Merck & Company Inc
$130.40
-1.11%
HEALTHCARE · Cap: $307.25B
SGRY
Surgery Partners Inc
$16.41
+5.33%
HEALTHCARE · Cap: $2.10B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 1867% more annual revenue ($65.77B vs $3.34B). MRK leads profitability with a 13.6% profit margin vs -2.3%. SGRY appears more attractively valued with a PEG of 1.66. SGRY earns a higher WallStSmart Score of 50/100 (C-).
MRK
Hold50
out of 100
Grade: D+
SGRY
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-62.3%
Fair Value
$81.23
Current Price
$130.40
$49.17 premium
Margin of Safety
+45.0%
Fair Value
$27.28
Current Price
$16.41
$10.87 discount
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
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
4.5% revenue growth
0.0% earnings growth
ROE of -4.5% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bull Case : SGRY
The strongest argument for SGRY centers on Price/Book.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Debt/Equity.
Bear Case : SGRY
The primary concerns for SGRY are PEG Ratio, Revenue Growth, EPS Growth. Debt-to-equity of 2.39 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 1.89 — 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.
Bottom Line
MRK scores higher overall (50/100 vs 50/100). SGRY offers better value entry with a 45.0% margin of safety. 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 →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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