Merck & Company Inc (MRK)vsUnitedHealth Group Incorporated (UNH)
MRK
Merck & Company Inc
$143.93
-0.54%
HEALTHCARE · Cap: $355.10B
UNH
UnitedHealth Group Incorporated
$379.09
-2.37%
HEALTHCARE · Cap: $340.27B
Smart Verdict
WallStSmart Research — data-driven comparison
UnitedHealth Group Incorporated generates 577% more annual revenue ($450.53B vs $66.57B). MRK leads profitability with a 4.8% profit margin vs 3.1%. UNH appears more attractively valued with a PEG of 1.06. 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
$82.84
Current Price
$143.93
$61.09 premium
Margin of Safety
-16.1%
Fair Value
$326.53
Current Price
$379.09
$52.56 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 61.5% YoY
Generating 10.3B in free cash flow
Areas to Watch
Trading at 8.5x book value
ROE of 7.6% — below average capital efficiency
4.8% margin — thin
Elevated debt levels
0.4% revenue growth
3.1% margin — thin
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 1.06 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 116.1x leaves little room for execution misses. Thin 4.8% margins leave little buffer for downturns.
Bear Case : UNH
The primary concerns for UNH are Revenue Growth, Profit Margin. Thin 3.1% margins leave little buffer for downturns.
Key Dynamics to Monitor
UNH carries more volatility with a beta of 0.62 — expect wider price swings.
MRK is growing revenue faster at 5.1% — sustainability is the question.
UNH generates stronger free cash flow (10.3B), 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
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