HealthStream Inc (HSTM)vsMerck & Company Inc (MRK)
HSTM
HealthStream Inc
$21.22
-1.94%
HEALTHCARE · Cap: $628.01M
MRK
Merck & Company Inc
$109.18
-1.60%
HEALTHCARE · Cap: $274.03B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 21281% more annual revenue ($65.01B vs $304.06M). MRK leads profitability with a 28.1% profit margin vs 6.0%. HSTM appears more attractively valued with a PEG of 2.45. MRK earns a higher WallStSmart Score of 59/100 (C).
HSTM
Hold45
out of 100
Grade: D
MRK
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+54.7%
Fair Value
$44.51
Current Price
$21.22
$23.29 discount
Margin of Safety
-13.2%
Fair Value
$96.48
Current Price
$109.18
$12.70 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Reasonable price relative to book value
Mega-cap, among the largest globally
Every $100 of equity generates 37 in profit
Strong operational efficiency at 32.8%
Keeps 28 of every $100 in revenue as profit
Attractively priced relative to earnings
Generating 1.8B in free cash flow
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
ROE of 5.1% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Earnings declined 19.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : HSTM
The strongest argument for HSTM centers on Debt/Equity, Price/Book.
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 : HSTM
The primary concerns for HSTM are PEG Ratio, P/E Ratio, Market Cap.
Bear Case : MRK
The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
HSTM carries more volatility with a beta of 0.46 — expect wider price swings.
HSTM is growing revenue faster at 7.4% — sustainability is the question.
MRK generates stronger free cash flow (1.8B), providing more financial flexibility.
Monitor HEALTH INFORMATION SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MRK scores higher overall (59/100 vs 45/100), backed by strong 28.1% margins. HSTM offers better value entry with a 54.7% 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.
HealthStream Inc
HEALTHCARE · HEALTH INFORMATION SERVICES · USA
HealthStream, Inc. provides provider and staff solutions for healthcare organizations in the United States. The company is headquartered in Nashville, Tennessee.
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 HEALTH INFORMATION SERVICES Stocks
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