The Ensign Group Inc (ENSG)vsMerck & Company Inc (MRK)
ENSG
The Ensign Group Inc
$170.30
+3.66%
HEALTHCARE · Cap: $8.73B
MRK
Merck & Company Inc
$120.79
-1.42%
HEALTHCARE · Cap: $285.64B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 1147% more annual revenue ($65.77B vs $5.27B). MRK leads profitability with a 13.6% profit margin vs 6.9%. ENSG appears more attractively valued with a PEG of 1.32. ENSG earns a higher WallStSmart Score of 63/100 (C+).
ENSG
Buy63
out of 100
Grade: C+
MRK
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-45.7%
Fair Value
$145.42
Current Price
$170.30
$24.88 premium
Margin of Safety
-49.3%
Fair Value
$80.88
Current Price
$120.79
$39.91 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
18.4% revenue growth
Earnings expanding 21.9% YoY
Mega-cap, among the largest globally
Strong operational efficiency at 38.6%
Generating 2.9B in free cash flow
Areas to Watch
6.9% margin — thin
Premium valuation, high expectations priced in
4.9% revenue growth
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : ENSG
The strongest argument for ENSG centers on Revenue Growth, EPS Growth. Revenue growth of 18.4% demonstrates continued momentum. PEG of 1.32 suggests the stock is reasonably priced for its growth.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bear Case : ENSG
The primary concerns for ENSG are Profit Margin.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Debt/Equity.
Key Dynamics to Monitor
ENSG profiles as a growth stock while MRK is a value play — different risk/reward profiles.
ENSG carries more volatility with a beta of 0.68 — expect wider price swings.
ENSG is growing revenue faster at 18.4% — sustainability is the question.
MRK generates stronger free cash flow (2.9B), providing more financial flexibility.
Bottom Line
ENSG scores higher overall (63/100 vs 50/100) and 18.4% revenue growth. 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.
The Ensign Group Inc
HEALTHCARE · MEDICAL CARE FACILITIES · USA
The Ensign Group, Inc. provides health care services in the post-acute care continuum and other ancillary businesses. The company is headquartered in San Juan Capistrano, California.
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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