HCA Healthcare, Inc. (HCA)vsMerck & Company Inc (MRK)
HCA
HCA Healthcare, Inc.
$438.12
+2.85%
HEALTHCARE · Cap: $92.43B
MRK
Merck & Company Inc
$150.91
+0.94%
HEALTHCARE · Cap: $355.10B
Smart Verdict
WallStSmart Research — data-driven comparison
HCA Healthcare, Inc. generates 17% more annual revenue ($78.01B vs $66.57B). HCA leads profitability with a 8.8% profit margin vs 4.8%. HCA appears more attractively valued with a PEG of 1.29. HCA earns a higher WallStSmart Score of 65/100 (C+).
HCA
Buy65
out of 100
Grade: C+
MRK
Hold36
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-76.3%
Fair Value
$301.38
Current Price
$438.12
$136.74 premium
Margin of Safety
-77.2%
Fair Value
$83.04
Current Price
$150.91
$67.87 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 136 in profit
Conservative balance sheet, low leverage
Large-cap with strong market position
Attractively priced relative to earnings
Generating 1.1B in free cash flow
Mega-cap, among the largest globally
Generating 4.5B in free cash flow
Areas to Watch
Distress zone — elevated risk
Trading at 8.9x book value
ROE of 7.6% — below average capital efficiency
4.8% margin — thin
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : HCA
The strongest argument for HCA centers on Return on Equity, Debt/Equity, Market Cap. PEG of 1.29 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 : HCA
The primary concerns for HCA are Altman Z-Score.
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
HCA carries more volatility with a beta of 1.11 — expect wider price swings.
HCA is growing revenue faster at 8.7% — 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
HCA scores higher overall (65/100 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.
HCA Healthcare, Inc.
HEALTHCARE · MEDICAL CARE FACILITIES · USA
HCA Healthcare is an American for-profit operator of health care facilities that was founded in 1968. It is based in Nashville, Tennessee, and, as of May 2020, owns and operates 186 hospitals and approximately 2,000 sites of care, including surgery centers, freestanding emergency rooms, urgent care centers and physician clinics in 21 states and the United Kingdom.
Visit Website →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 →Compare with Other MEDICAL CARE FACILITIES Stocks
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