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BHC vs MRK

BHC
Bausch Health Companies Inc.
BEARISH
Price
$5.91
Market Cap
$2.19B
Sector
Healthcare
AI Confidence
78%
MRK
Merck & Co., Inc.
NEUTRAL
Price
$121.25
Market Cap
$299.79B
Sector
Healthcare
AI Confidence
90%

Valuation

P/E Ratio
BHC
6.79
MRK
16.66
Forward P/E
BHC
1.41
MRK
12.42
P/B Ratio
BHC
-3.88
MRK
5.7
P/S Ratio
BHC
0.22
MRK
4.61
EV/EBITDA
BHC
6.95
MRK
11.46

Profitability

Gross Margin
BHC
70.67%
MRK
77.21%
Operating Margin
BHC
26.74%
MRK
32.77%
Profit Margin
BHC
3.61%
MRK
28.08%
ROE
BHC
563.16%
MRK
36.88%
ROA
BHC
4.83%
MRK
12.04%

Growth

Revenue Growth
BHC
6.8%
MRK
5.0%
Earnings Growth
BHC
--
MRK
-19.3%

Financial Health

Debt/Equity
BHC
59.11
MRK
0.96
Current Ratio
BHC
1.3
MRK
1.54
Quick Ratio
BHC
0.78
MRK
0.96

Dividends

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

AI Verdict

BHC BEARISH

The deterministic health scores paint a concerning picture, with a Piotroski F-Score of 4/9 indicating marginal financial stability and no Altman Z-Score available to confirm solvency, raising red flags. Despite a low P/E of 6.79 and forward P/E of 1.41 suggesting potential undervaluation, the negative Price/Book ratio (-3.88) implies serious equity deficiencies or accumulated losses. Strong operating and gross margins contrast sharply with a sky-high Debt/Equity ratio of 59.11, indicating extreme leverage risk. Insider selling, weak technical trend (0/100), and a 5-year price decline of 78.1% further underscore investor skepticism and structural challenges.

Strengths
High gross margin (70.67%) indicating strong pricing power or cost control in core operations
Solid operating margin (26.74%) relative to sector average
Revenue growth of 6.80% YoY in a competitive specialty pharma environment
Risks
Extremely high Debt/Equity ratio of 59.11, far above sector average of 2.26, indicating severe financial leverage and refinancing risk
Piotroski F-Score of 4/9 signals weak financial health, particularly concerning given lack of Altman Z-Score for validation
Negative Price/Book ratio (-3.88) suggests book value is negative, a sign of accumulated losses or negative equity
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

BHC vs MRK: Head-to-Head Comparison

This page compares Bausch Health Companies Inc. (BHC) 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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