Merck & Company Inc (MRK)vsU.S. Physical Therapy, Inc. (USPH)
MRK
Merck & Company Inc
$128.66
+2.56%
HEALTHCARE · Cap: $283.78B
USPH
U.S. Physical Therapy, Inc.
$66.32
+2.72%
HEALTHCARE · Cap: $1.05B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 8250% more annual revenue ($65.77B vs $787.68M). MRK leads profitability with a 13.6% profit margin vs 4.4%. USPH appears more attractively valued with a PEG of 2.41. USPH earns a higher WallStSmart Score of 52/100 (C-).
MRK
Hold50
out of 100
Grade: D+
USPH
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-40.6%
Fair Value
$80.96
Current Price
$128.66
$47.70 premium
Margin of Safety
-2.6%
Fair Value
$85.88
Current Price
$66.32
$19.56 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
Reasonable price relative to book value
Earnings expanding 23.6% YoY
Areas to Watch
Premium valuation, high expectations priced in
4.9% revenue growth
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Smaller company, higher risk/reward
ROE of 0.3% — below average capital efficiency
4.4% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bull Case : USPH
The strongest argument for USPH centers on Price/Book, EPS Growth.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Debt/Equity.
Bear Case : USPH
The primary concerns for USPH are PEG Ratio, Market Cap, Return on Equity. A P/E of 137.6x leaves little room for execution misses. Thin 4.4% margins leave little buffer for downturns.
Key Dynamics to Monitor
USPH carries more volatility with a beta of 1.16 — expect wider price swings.
USPH is growing revenue faster at 7.9% — 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
USPH scores higher overall (52/100 vs 50/100). 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 →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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