WallStSmart

Community Health Systems Inc (CYH)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 456% more annual revenue ($66.57B vs $11.98B). MRK leads profitability with a 4.8% profit margin vs 2.1%. CYH appears more attractively valued with a PEG of 2.38. CYH earns a higher WallStSmart Score of 45/100 (D+).

CYH

Hold

45

out of 100

Grade: D+

Growth: 2.7Profit: 5.0Value: 8.0Quality: 6.5
Piotroski: 5/9Altman Z: 1.06

MRK

Hold

36

out of 100

Grade: F

Growth: 4.0Profit: 4.5Value: 2.0Quality: 5.0
Piotroski: 3/9Altman Z: 2.27
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CYHUndervalued (+86.4%)

Margin of Safety

+86.4%

Fair Value

$24.82

Current Price

$2.87

$21.95 discount

UndervaluedFair: $24.82Overvalued
MRKSignificantly Overvalued (-77.2%)

Margin of Safety

-77.2%

Fair Value

$83.04

Current Price

$146.87

$63.83 premium

UndervaluedFair: $83.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CYH2 strengths · Avg: 10.0/10
P/E RatioValuation
1.6x10/10

Attractively priced relative to earnings

Debt/EquityHealth
-7.3410/10

Conservative balance sheet, low leverage

MRK2 strengths · Avg: 9.0/10
Market CapQuality
$355.10B10/10

Mega-cap, among the largest globally

Free Cash FlowQuality
$4.48B8/10

Generating 4.5B in free cash flow

Areas to Watch

CYH4 concerns · Avg: 3.3/10
PEG RatioValuation
2.384/10

Expensive relative to growth rate

Market CapQuality
$411.75M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
2.1%3/10

2.1% margin — thin

MRK4 concerns · Avg: 3.3/10
Price/BookValuation
8.6x4/10

Trading at 8.6x book value

Return on EquityProfitability
7.6%3/10

ROE of 7.6% — below average capital efficiency

Profit MarginProfitability
4.8%3/10

4.8% margin — thin

Debt/EquityHealth
1.293/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : CYH

The strongest argument for CYH centers on P/E Ratio, Debt/Equity.

Bull Case : MRK

The strongest argument for MRK centers on Market Cap, Free Cash Flow.

Bear Case : CYH

The primary concerns for CYH are PEG Ratio, Market Cap, Return on Equity. Thin 2.1% margins leave little buffer for downturns.

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.

Key Dynamics to Monitor

CYH carries more volatility with a beta of 1.86 — 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 MEDICAL CARE FACILITIES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CYH scores higher overall (45/100 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.

Community Health Systems Inc

HEALTHCARE · MEDICAL CARE FACILITIES · USA

Community Health Systems, Inc. owns, leases and operates general acute care hospitals in the United States. The company is headquartered in Franklin, Tennessee.

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 →

Want to dig deeper into these stocks?