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ACHC vs MRK

ACHC
Acadia Healthcare Company, Inc.
BEARISH
Price
$23.52
Market Cap
$2.17B
Sector
Healthcare
AI Confidence
85%
MRK
Merck & Co., Inc.
NEUTRAL
Price
$121.25
Market Cap
$299.79B
Sector
Healthcare
AI Confidence
90%

Valuation

P/E Ratio
ACHC
--
MRK
16.66
Forward P/E
ACHC
14.03
MRK
12.42
P/B Ratio
ACHC
1.09
MRK
5.7
P/S Ratio
ACHC
0.65
MRK
4.61
EV/EBITDA
ACHC
8.46
MRK
11.46

Profitability

Gross Margin
ACHC
41.48%
MRK
77.21%
Operating Margin
ACHC
5.8%
MRK
32.77%
Profit Margin
ACHC
-33.29%
MRK
28.08%
ROE
ACHC
-40.96%
MRK
36.88%
ROA
ACHC
4.22%
MRK
12.04%

Growth

Revenue Growth
ACHC
6.1%
MRK
5.0%
Earnings Growth
ACHC
--
MRK
-19.3%

Financial Health

Debt/Equity
ACHC
1.24
MRK
0.96
Current Ratio
ACHC
1.55
MRK
1.54
Quick Ratio
ACHC
1.29
MRK
0.96

Dividends

Dividend Yield
ACHC
--
MRK
2.83%
Payout Ratio
ACHC
0.0%
MRK
45.05%

AI Verdict

ACHC BEARISH

ACHC's Piotroski F-Score of 2/9 indicates severe financial distress, with weak profitability, declining earnings, and high leverage. The absence of an Altman Z-Score and negative ROE (-40.96%) raise significant bankruptcy risk concerns. Despite a modest forward P/E of 14.03 and strong recent earnings surprises, the company's negative profit margin (-33.29%) and massive year-over-year EPS decline (-89.1%) undermine its fundamentals. The stock's 5-year price drop of 61.4% and lack of dividend support further signal investor skepticism. Analysts recommend 'buy' but with limited conviction, as the underlying financial health remains fragile.

Strengths
Recent quarterly earnings have consistently beaten estimates (3/4 in last 4 quarters)
Strong average earnings surprise of 206.53% over the last 4 quarters
Positive revenue growth of 6.10% YoY, outpacing many peers
Risks
Piotroski F-Score of 2/9 signals extreme financial weakness and high distress risk
Negative profit margin (-33.29%) and ROE (-40.96%) reflect deep profitability issues
Debt/Equity ratio of 1.24 is elevated for a healthcare facility operator, especially with negative earnings
MRK NEUTRAL

MRK shows neutral fundamentals based on deterministic rules. Financial strength is weak (F-Score 3/9). Mixed signals with both opportunities and risks present.

Strengths
Strong profitability (28.1% margin)
Strong ROE of 36.9%
Risks
Premium vs Graham Number ($59.01)
Weak financial trend (Piotroski F-Score: 3/9)

Compare Another Pair

ACHC vs MRK: Head-to-Head Comparison

This page compares Acadia Healthcare Company, Inc. (ACHC) and Merck & Co., Inc. (MRK) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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