Merck & Company Inc (MRK)vsUnitedHealth Group Incorporated (UNH)
MRK
Merck & Company Inc
$146.35
+3.85%
HEALTHCARE · Cap: $360.08B
UNH
UnitedHealth Group Incorporated
$407.10
+0.90%
HEALTHCARE · Cap: $360.32B
Smart Verdict
WallStSmart Research — data-driven comparison
UnitedHealth Group Incorporated generates 576% more annual revenue ($450.06B vs $66.57B). MRK leads profitability with a 4.8% profit margin vs 3.5%. UNH appears more attractively valued with a PEG of 1.01. UNH earns a higher WallStSmart Score of 62/100 (C+).
MRK
Hold36
out of 100
Grade: F
UNH
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-73.7%
Fair Value
$83.64
Current Price
$146.35
$62.71 premium
Margin of Safety
-25.9%
Fair Value
$326.16
Current Price
$407.10
$80.94 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Generating 4.5B in free cash flow
Mega-cap, among the largest globally
Earnings expanding 75.9% YoY
Generating 4.3B in free cash flow
Areas to Watch
Trading at 8.6x book value
ROE of 7.6% — below average capital efficiency
4.8% margin — thin
Elevated debt levels
Moderate valuation
3.5% margin — thin
Revenue declined 0.4%
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Free Cash Flow.
Bull Case : UNH
The strongest argument for UNH centers on Market Cap, EPS Growth, Free Cash Flow. PEG of 1.01 suggests the stock is reasonably priced for its growth.
Bear Case : MRK
The primary concerns for MRK are Price/Book, Return on Equity, Profit Margin. A P/E of 115.8x leaves little room for execution misses. Thin 4.8% margins leave little buffer for downturns.
Bear Case : UNH
The primary concerns for UNH are P/E Ratio, Profit Margin, Revenue Growth. Thin 3.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
UNH carries more volatility with a beta of 0.61 — 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.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
UNH scores higher overall (62/100 vs 36/100). Both earn "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 →UnitedHealth Group Incorporated
HEALTHCARE · HEALTHCARE PLANS · 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. In 2020, it was the second-largest healthcare company (behind CVS Health) by revenue with $257.1 billion, and the largest insurance company by net premiums. UnitedHealthcare revenues comprise 80% of the Group's overall revenue.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
Want to dig deeper into these stocks?