Merck & Company Inc (MRK)vsTenet Healthcare Corporation (THC)
MRK
Merck & Company Inc
$146.72
-0.14%
HEALTHCARE · Cap: $368.89B
THC
Tenet Healthcare Corporation
$283.33
-1.09%
HEALTHCARE · Cap: $21.62B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 209% more annual revenue ($67.38B vs $21.81B). THC leads profitability with a 10.3% profit margin vs 3.6%. THC appears more attractively valued with a PEG of 1.82. THC earns a higher WallStSmart Score of 74/100 (B).
MRK
Hold44
out of 100
Grade: D
THC
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-76.6%
Fair Value
$84.66
Current Price
$146.72
$62.06 premium
Intrinsic value data unavailable for THC.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 41.2%
Generating 4.5B in free cash flow
Attractively priced relative to earnings
Every $100 of equity generates 48 in profit
Earnings expanding 213.4% YoY
Generating 1.1B in free cash flow
Areas to Watch
Trading at 8.6x book value
4.7% revenue growth
ROE of 7.6% — below average capital efficiency
3.6% margin — thin
Expensive relative to growth rate
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bull Case : THC
The strongest argument for THC centers on P/E Ratio, Return on Equity, EPS Growth.
Bear Case : MRK
The primary concerns for MRK are Price/Book, Revenue Growth, Return on Equity. A P/E of 151.0x leaves little room for execution misses. Thin 3.6% margins leave little buffer for downturns.
Bear Case : THC
The primary concerns for THC are PEG Ratio, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.43 is elevated, increasing financial risk.
Key Dynamics to Monitor
THC carries more volatility with a beta of 1.20 — expect wider price swings.
THC is growing revenue faster at 6.8% — sustainability is the question.
MRK generates stronger free cash flow (4.5B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
THC scores higher overall (74/100 vs 44/100). Both earn "Strong 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.
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 →Tenet Healthcare Corporation
HEALTHCARE · MEDICAL CARE FACILITIES · USA
Tenet Healthcare Corporation is a diversified health services company. The company is headquartered in Dallas, Texas.
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