Merck & Company Inc (MRK)vsUniversal Health Services Inc (UHS)
MRK
Merck & Company Inc
$119.60
+0.88%
HEALTHCARE · Cap: $283.78B
UHS
Universal Health Services Inc
$145.17
+1.72%
HEALTHCARE · Cap: $8.86B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 270% more annual revenue ($65.77B vs $17.76B). MRK leads profitability with a 13.6% profit margin vs 8.6%. UHS appears more attractively valued with a PEG of 1.02. UHS earns a higher WallStSmart Score of 70/100 (B).
MRK
Hold50
out of 100
Grade: D+
UHS
Strong Buy70
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-40.6%
Fair Value
$80.96
Current Price
$119.60
$38.64 premium
Margin of Safety
-29.9%
Fair Value
$178.11
Current Price
$145.17
$32.94 premium
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
Attractively priced relative to earnings
Reasonable price relative to book value
Every $100 of equity generates 20 in profit
Areas to Watch
Premium valuation, high expectations priced in
4.9% revenue growth
Elevated debt levels
Weak financial health signals
No major concerns identified
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bull Case : UHS
The strongest argument for UHS centers on P/E Ratio, Price/Book, Return on Equity. PEG of 1.02 suggests the stock is reasonably priced for its growth.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Debt/Equity.
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 1.08 — expect wider price swings.
UHS is growing revenue faster at 9.6% — 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
UHS scores higher overall (70/100 vs 50/100). 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 →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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