Merck & Company Inc (MRK)vsTenet Healthcare Corporation (THC)
MRK
Merck & Company Inc
$150.91
+0.94%
HEALTHCARE · Cap: $355.10B
THC
Tenet Healthcare Corporation
$262.06
+0.42%
HEALTHCARE · Cap: $21.10B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 205% more annual revenue ($66.57B vs $21.81B). THC leads profitability with a 10.3% profit margin vs 4.8%. THC appears more attractively valued with a PEG of 1.82. THC earns a higher WallStSmart Score of 74/100 (B).
MRK
Hold36
out of 100
Grade: F
THC
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-77.2%
Fair Value
$83.04
Current Price
$150.91
$67.87 premium
Intrinsic value data unavailable for THC.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Generating 4.5B in free cash flow
Attractively priced relative to earnings
Every $100 of equity generates 48 in profit
Earnings expanding 213.4% YoY
Areas to Watch
Trading at 8.9x book value
ROE of 7.6% — below average capital efficiency
4.8% margin — thin
Elevated debt levels
Expensive relative to growth rate
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Free Cash Flow.
Bull Case : THC
The strongest argument for THC centers on P/E Ratio, Return on Equity, EPS Growth.
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.
Bear Case : THC
The primary concerns for THC are PEG Ratio, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.84 is elevated, increasing financial risk.
Key Dynamics to Monitor
THC carries more volatility with a beta of 1.23 — expect wider price swings.
THC is growing revenue faster at 6.8% — sustainability is the question.
MRK generates stronger free cash flow (4.5B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
THC scores higher overall (74/100 vs 36/100). Both earn "Strong 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.
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 →Tenet Healthcare Corporation
HEALTHCARE · MEDICAL CARE FACILITIES · USA
Tenet Healthcare Corporation is a diversified health services company. The company is headquartered in Dallas, Texas.
Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
Want to dig deeper into these stocks?