Elevance Health Inc (ELV)vsMerck & Company Inc (MRK)
ELV
Elevance Health Inc
$418.72
+0.52%
HEALTHCARE · Cap: $90.81B
MRK
Merck & Company Inc
$143.93
-0.54%
HEALTHCARE · Cap: $355.10B
Smart Verdict
WallStSmart Research — data-driven comparison
Elevance Health Inc generates 202% more annual revenue ($201.11B vs $66.57B). MRK leads profitability with a 4.8% profit margin vs 2.5%. ELV appears more attractively valued with a PEG of 1.36. ELV earns a higher WallStSmart Score of 52/100 (C-).
ELV
Buy52
out of 100
Grade: C-
MRK
Hold36
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-0.7%
Fair Value
$415.84
Current Price
$418.72
$2.88 premium
Margin of Safety
-73.7%
Fair Value
$82.84
Current Price
$143.93
$61.09 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Reasonable price relative to book value
Generating 1.6B in free cash flow
Mega-cap, among the largest globally
Generating 4.5B in free cash flow
Areas to Watch
1.4% revenue growth
2.5% margin — thin
Operating margin of 4.6%
Earnings declined 13.1%
Trading at 8.5x book value
ROE of 7.6% — below average capital efficiency
4.8% margin — thin
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : ELV
The strongest argument for ELV centers on Market Cap, Price/Book, Free Cash Flow. PEG of 1.36 suggests the stock is reasonably priced for its growth.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Free Cash Flow.
Bear Case : ELV
The primary concerns for ELV are Revenue Growth, Profit Margin, Operating Margin. Thin 2.5% 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
ELV carries more volatility with a beta of 0.70 — 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 HEALTHCARE PLANS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ELV scores higher overall (52/100 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.
Elevance Health Inc
HEALTHCARE · HEALTHCARE PLANS · USA
Elevance Health Inc. is a health benefits company. The company is headquartered in Indianapolis, Indiana.
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.
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