Merck & Company Inc (MRK)vsUniversal Health Services Inc (UHS)
MRK
Merck & Company Inc
$119.37
+2.58%
HEALTHCARE · Cap: $287.71B
UHS
Universal Health Services Inc
$186.72
+0.43%
HEALTHCARE · Cap: $11.41B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 274% more annual revenue ($65.01B vs $17.36B). MRK leads profitability with a 28.1% profit margin vs 8.6%. UHS appears more attractively valued with a PEG of 1.29. UHS earns a higher WallStSmart Score of 76/100 (B+).
MRK
Buy59
out of 100
Grade: C
UHS
Strong Buy76
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-141.2%
Fair Value
$49.50
Current Price
$119.37
$69.87 premium
Margin of Safety
+78.6%
Fair Value
$1081.08
Current Price
$186.72
$894.36 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 37 in profit
Strong operational efficiency at 32.8%
Keeps 28 of every $100 in revenue as profit
Attractively priced relative to earnings
Generating 1.8B in free cash flow
Attractively priced relative to earnings
Every $100 of equity generates 21 in profit
Reasonable price relative to book value
Earnings expanding 42.7% YoY
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Earnings declined 19.3%
No major concerns identified
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 28.1% and operating margin at 32.8%.
Bull Case : UHS
The strongest argument for UHS centers on P/E Ratio, Return on Equity, Price/Book. PEG of 1.29 suggests the stock is reasonably priced for its growth.
Bear Case : MRK
The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.
Bear Case : UHS
No major red flags identified for UHS, but monitor valuation.
Key Dynamics to Monitor
UHS carries more volatility with a beta of 1.26 — expect wider price swings.
UHS is growing revenue faster at 9.1% — sustainability is the question.
MRK generates stronger free cash flow (1.8B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
UHS scores higher overall (76/100 vs 59/100). Both earn "Strong Buy" 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 →Universal Health Services Inc
HEALTHCARE · MEDICAL CARE FACILITIES · USA
UnitedHealth Group Incorporated is an American for-profit multinational managed healthcare and insurance company based in Minnetonka, Minnesota. It offers health care products and insurance services.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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