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ASTH vs MRK

ASTH
Astrana Health, Inc.
BEARISH
Price
$20.33
Market Cap
$1.02B
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
ASTH
107.0
MRK
16.66
Forward P/E
ASTH
9.64
MRK
12.42
P/B Ratio
ASTH
1.29
MRK
5.7
P/S Ratio
ASTH
0.35
MRK
4.61
EV/EBITDA
ASTH
11.98
MRK
11.46

Profitability

Gross Margin
ASTH
10.25%
MRK
77.21%
Operating Margin
ASTH
3.09%
MRK
32.77%
Profit Margin
ASTH
0.33%
MRK
28.08%
ROE
ASTH
1.83%
MRK
36.88%
ROA
ASTH
2.88%
MRK
12.04%

Growth

Revenue Growth
ASTH
99.7%
MRK
5.0%
Earnings Growth
ASTH
-97.7%
MRK
-19.3%

Financial Health

Debt/Equity
ASTH
1.96
MRK
0.96
Current Ratio
ASTH
1.4
MRK
1.54
Quick Ratio
ASTH
1.36
MRK
0.96

Dividends

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

AI Verdict

ASTH BEARISH

ASTH's Piotroski F-Score of 6/9 indicates a stable but not strong financial foundation, with notable weaknesses in profitability and cash flow generation. The absence of an Altman Z-Score raises concern about default risk, particularly given a high debt/equity ratio of 1.96 and negative earnings growth of -97.7% YoY. While the company exhibits explosive revenue growth (99.7% YoY) and strong earnings surprises in recent quarters, these are not sustainable without improving margins and profitability. The stock trades at a forward P/E of 9.64 but a current P/E of 107.00, suggesting a massive valuation disconnect that reflects overpricing relative to current earnings. The Graham Number of $8.19 and intrinsic value of $1.33 imply severe overvaluation, with the current price of $20.33 trading at a significant premium.

Strengths
Explosive revenue growth of 99.7% YoY
Strong recent earnings surprise history (average +21.43% over last 4 quarters)
Positive recent quarterly EPS growth (Q/Q +15.5%, YoY +103.0%)
Risks
Piotroski F-Score of 6/9 indicates financial stability but not strength, with red flags in profitability and cash flow
Negative earnings growth of -97.7% YoY despite revenue growth, signaling unsustainable business model
Extremely high current P/E of 107.00 vs. forward P/E of 9.64, indicating overvaluation based on current 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

ASTH vs MRK: Head-to-Head Comparison

This page compares Astrana Health, Inc. (ASTH) 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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