WallStSmart

Merck & Company Inc (MRK)vsNational HealthCare Corporation (NHC)

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Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 4183% more annual revenue ($65.01B vs $1.52B). MRK leads profitability with a 28.1% profit margin vs 7.9%. NHC appears more attractively valued with a PEG of 0.82. NHC earns a higher WallStSmart Score of 62/100 (C+).

MRK

Buy

59

out of 100

Grade: C

Growth: 4.0Profit: 9.5Value: 4.7Quality: 4.8
Piotroski: 3/9

NHC

Buy

62

out of 100

Grade: C+

Growth: 7.3Profit: 5.5Value: 6.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MRKOvervalued (-13.2%)

Margin of Safety

-13.2%

Fair Value

$96.48

Current Price

$109.18

$12.70 premium

UndervaluedFair: $96.48Overvalued
NHCOvervalued (-6.8%)

Margin of Safety

-6.8%

Fair Value

$157.58

Current Price

$175.07

$17.49 premium

UndervaluedFair: $157.58Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MRK6 strengths · Avg: 9.2/10
Market CapQuality
$274.03B10/10

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
15.2x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.82B8/10

Generating 1.8B in free cash flow

NHC3 strengths · Avg: 8.7/10
EPS GrowthGrowth
306.3%10/10

Earnings expanding 306.3% YoY

PEG RatioValuation
0.828/10

Growing faster than its price suggests

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

Areas to Watch

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

Weak financial health signals

PEG RatioValuation
3.362/10

Expensive relative to growth rate

EPS GrowthGrowth
-19.3%2/10

Earnings declined 19.3%

NHC2 concerns · Avg: 3.5/10
Revenue GrowthGrowth
4.6%4/10

4.6% revenue growth

Profit MarginProfitability
7.9%3/10

7.9% margin — thin

Comparative Analysis Report

WallStSmart Research

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%.

Bull Case : NHC

The strongest argument for NHC centers on EPS Growth, PEG Ratio, Price/Book. PEG of 0.82 suggests the stock is reasonably priced for its growth.

Bear Case : MRK

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

Bear Case : NHC

The primary concerns for NHC are Revenue Growth, Profit Margin.

Key Dynamics to Monitor

NHC carries more volatility with a beta of 0.59 — expect wider price swings.

MRK is growing revenue faster at 5.0% — sustainability is the question.

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

Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

NHC scores higher overall (62/100 vs 59/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

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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National HealthCare Corporation

HEALTHCARE · MEDICAL CARE FACILITIES · USA

National HealthCare Corporation operates, manages, and provides services to skilled nursing facilities, assisted living facilities, independent living facilities, home health programs, and a behavioral health hospital. The company is headquartered in Murfreesboro, Tennessee.

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