WallStSmart

Hims Hers Health Inc (HIMS)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 2669% more annual revenue ($65.01B vs $2.35B). MRK leads profitability with a 28.1% profit margin vs 5.5%. HIMS appears more attractively valued with a PEG of 2.63. MRK earns a higher WallStSmart Score of 59/100 (C).

HIMS

Hold

50

out of 100

Grade: D+

Growth: 6.7Profit: 6.0Value: 4.0Quality: 4.5
Piotroski: 2/9Altman Z: 1.58

MRK

Buy

59

out of 100

Grade: C

Growth: 4.0Profit: 9.5Value: 4.0Quality: 4.8
Piotroski: 3/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HIMSUndervalued (+24.9%)

Margin of Safety

+24.9%

Fair Value

$39.60

Current Price

$26.33

$13.27 discount

UndervaluedFair: $39.60Overvalued
MRKSignificantly Overvalued (-15.1%)

Margin of Safety

-15.1%

Fair Value

$96.48

Current Price

$110.95

$14.47 premium

UndervaluedFair: $96.48Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HIMS2 strengths · Avg: 8.5/10
Return on EquityProfitability
25.2%9/10

Every $100 of equity generates 25 in profit

Revenue GrowthGrowth
28.4%8/10

Revenue surging 28.4% year-over-year

MRK6 strengths · Avg: 9.2/10
Market CapQuality
$276.38B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
36.9%10/10

Every $100 of equity generates 37 in profit

Operating MarginProfitability
32.8%10/10

Strong operational efficiency at 32.8%

Profit MarginProfitability
28.1%9/10

Keeps 28 of every $100 in revenue as profit

P/E RatioValuation
15.4x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.82B8/10

Generating 1.8B in free cash flow

Areas to Watch

HIMS4 concerns · Avg: 3.5/10
Price/BookValuation
11.1x4/10

Trading at 11.1x book value

Altman Z-ScoreHealth
1.584/10

Distress zone — elevated risk

Profit MarginProfitability
5.5%3/10

5.5% margin — thin

Operating MarginProfitability
2.7%3/10

Operating margin of 2.7%

MRK3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.422/10

Expensive relative to growth rate

EPS GrowthGrowth
-19.3%2/10

Earnings declined 19.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : HIMS

The strongest argument for HIMS centers on Return on Equity, Revenue Growth. Revenue growth of 28.4% demonstrates continued momentum.

Bull Case : MRK

The strongest argument for MRK centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 28.1% and operating margin at 32.8%.

Bear Case : HIMS

The primary concerns for HIMS are Price/Book, Altman Z-Score, Profit Margin. A P/E of 59.9x leaves little room for execution misses. Debt-to-equity of 2.34 is elevated, increasing financial risk.

Bear Case : MRK

The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.

Key Dynamics to Monitor

HIMS profiles as a growth stock while MRK is a value play — different risk/reward profiles.

HIMS carries more volatility with a beta of 2.31 — expect wider price swings.

HIMS is growing revenue faster at 28.4% — sustainability is the question.

MRK generates stronger free cash flow (1.8B), providing more financial flexibility.

Bottom Line

MRK scores higher overall (59/100 vs 50/100), backed by strong 28.1% margins. HIMS offers better value entry with a 24.9% 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.

Hims Hers Health Inc

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Hims & Hers Health, Inc. operates a multi-specialty telehealth platform that connects consumers with licensed healthcare professionals. The company is headquartered in San Francisco, California.

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 →

Want to dig deeper into these stocks?