Merck & Company Inc (MRK)vsUniversal Health Services Inc (UHS)
MRK
Merck & Company Inc
$143.93
-0.54%
HEALTHCARE · Cap: $355.10B
UHS
Universal Health Services Inc
$174.83
+1.22%
HEALTHCARE · Cap: $10.13B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 267% more annual revenue ($66.57B vs $18.11B). UHS leads profitability with a 8.4% profit margin vs 4.8%. UHS appears more attractively valued with a PEG of 1.14. UHS earns a higher WallStSmart Score of 72/100 (B).
MRK
Hold36
out of 100
Grade: F
UHS
Strong Buy72
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-73.7%
Fair Value
$82.84
Current Price
$143.93
$61.09 premium
Margin of Safety
-24.0%
Fair Value
$186.49
Current Price
$174.83
$11.66 premium
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
Reasonable price relative to book value
Every $100 of equity generates 20 in profit
Areas to Watch
Trading at 8.5x book value
ROE of 7.6% — below average capital efficiency
4.8% margin — thin
Elevated debt levels
No major concerns identified
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Free Cash Flow.
Bull Case : UHS
The strongest argument for UHS centers on P/E Ratio, Price/Book, Return on Equity. PEG of 1.14 suggests the stock is reasonably priced for its 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 : UHS
No major red flags identified for UHS, but monitor valuation.
Key Dynamics to Monitor
UHS carries more volatility with a beta of 1.06 — expect wider price swings.
UHS is growing revenue faster at 8.3% — 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
UHS scores higher overall (72/100 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 →Universal Health Services Inc
HEALTHCARE · MEDICAL CARE FACILITIES · USA
UnitedHealth Group Incorporated is an American for-profit multinational managed healthcare and insurance company based in Minnetonka, Minnesota. It offers health care products and insurance services.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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