Merck & Company Inc (MRK)vsU.S. Physical Therapy, Inc. (USPH)
MRK
Merck & Company Inc
$148.81
+0.54%
HEALTHCARE · Cap: $365.34B
USPH
U.S. Physical Therapy, Inc.
$84.84
+1.29%
HEALTHCARE · Cap: $1.24B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 8177% more annual revenue ($66.57B vs $804.27M). MRK leads profitability with a 4.8% profit margin vs 4.0%. USPH appears more attractively valued with a PEG of 2.70. USPH earns a higher WallStSmart Score of 46/100 (D+).
MRK
Hold36
out of 100
Grade: F
USPH
Hold46
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-78.2%
Fair Value
$83.04
Current Price
$148.81
$65.77 premium
Margin of Safety
+0.5%
Fair Value
$88.62
Current Price
$84.84
$3.78 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Generating 4.5B in free cash flow
Reasonable price relative to book value
Areas to Watch
Trading at 8.8x book value
ROE of 7.6% — below average capital efficiency
4.8% margin — thin
Elevated debt levels
Smaller company, higher risk/reward
ROE of 0.3% — below average capital efficiency
4.0% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Free Cash Flow.
Bull Case : USPH
The strongest argument for USPH centers on Price/Book.
Bear Case : MRK
The primary concerns for MRK are Price/Book, Return on Equity, Profit Margin. A P/E of 120.4x leaves little room for execution misses. Thin 4.8% margins leave little buffer for downturns.
Bear Case : USPH
The primary concerns for USPH are Market Cap, Return on Equity, Profit Margin. A P/E of 489.2x leaves little room for execution misses. Thin 4.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
USPH carries more volatility with a beta of 1.13 — expect wider price swings.
USPH is growing revenue faster at 8.5% — 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
USPH scores higher overall (46/100 vs 36/100). Both earn "Hold" 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 →U.S. Physical Therapy, Inc.
HEALTHCARE · MEDICAL CARE FACILITIES · USA
US Physical Therapy, Inc. operates outpatient physical therapy clinics that provide preoperative and postoperative care and treatment for orthopedic-related disorders, sports-related injuries, preventive care, injured worker rehabilitation, and neurology-related injuries. The company is headquartered in Houston, Texas.
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