WallStSmart

Medirom Healthcare Technologies Inc (MRM)vsService Corporation International (SCI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Medirom Healthcare Technologies Inc generates 87% more annual revenue ($8.07B vs $4.31B). SCI leads profitability with a 12.6% profit margin vs 0.5%. MRM trades at a lower P/E of 3.3x. SCI earns a higher WallStSmart Score of 62/100 (C+).

MRM

Hold

39

out of 100

Grade: F

Growth: 6.0Profit: 4.5Value: 8.3Quality: 3.5
Piotroski: 6/9Altman Z: 0.99

SCI

Buy

62

out of 100

Grade: C+

Growth: 4.7Profit: 8.0Value: 8.0Quality: 3.3
Piotroski: 3/9Altman Z: 0.52
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MRMUndervalued (+92.5%)

Margin of Safety

+92.5%

Fair Value

$17.32

Current Price

$1.13

$16.19 discount

UndervaluedFair: $17.32Overvalued
SCIOvervalued (-5.6%)

Margin of Safety

-5.6%

Fair Value

$79.95

Current Price

$78.79

$1.16 premium

UndervaluedFair: $79.95Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MRM3 strengths · Avg: 9.3/10
P/E RatioValuation
3.3x10/10

Attractively priced relative to earnings

Return on EquityProfitability
53.2%10/10

Every $100 of equity generates 53 in profit

EPS GrowthGrowth
27.8%8/10

Earnings expanding 27.8% YoY

SCI2 strengths · Avg: 9.0/10
Return on EquityProfitability
32.7%10/10

Every $100 of equity generates 33 in profit

Operating MarginProfitability
25.5%8/10

Strong operational efficiency at 25.5%

Areas to Watch

MRM4 concerns · Avg: 2.5/10
Market CapQuality
$9.64M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
0.5%3/10

0.5% margin — thin

Revenue GrowthGrowth
-6.7%2/10

Revenue declined 6.7%

Free Cash FlowQuality
$-2.48M2/10

Negative free cash flow — burning cash

SCI3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
1.7%4/10

1.7% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Altman Z-ScoreHealth
0.522/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : MRM

The strongest argument for MRM centers on P/E Ratio, Return on Equity, EPS Growth.

Bull Case : SCI

The strongest argument for SCI centers on Return on Equity, Operating Margin. PEG of 1.48 suggests the stock is reasonably priced for its growth.

Bear Case : MRM

The primary concerns for MRM are Market Cap, Profit Margin, Revenue Growth. Debt-to-equity of 8.84 is elevated, increasing financial risk. Thin 0.5% margins leave little buffer for downturns.

Bear Case : SCI

The primary concerns for SCI are Revenue Growth, Piotroski F-Score, Altman Z-Score.

Key Dynamics to Monitor

MRM carries more volatility with a beta of 1.01 — expect wider price swings.

SCI is growing revenue faster at 1.7% — sustainability is the question.

SCI generates stronger free cash flow (132M), providing more financial flexibility.

Monitor PERSONAL SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SCI scores higher overall (62/100 vs 39/100). MRM offers better value entry with a 92.5% margin of safety. 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.

Medirom Healthcare Technologies Inc

CONSUMER CYCLICAL · PERSONAL SERVICES · USA

MEDIROM Healthcare Technologies Inc. provides comprehensive healthcare services in Japan. The company is headquartered in Tokyo, Japan.

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Service Corporation International

CONSUMER CYCLICAL · PERSONAL SERVICES · USA

Service Corporation International offers death care products and services in the United States and Canada. The company is headquartered in Houston, Texas.

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