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CAH vs MRK

CAH
Cardinal Health, Inc.
NEUTRAL
Price
$199.85
Market Cap
$47.03B
Sector
Healthcare
AI Confidence
75%
MRK
Merck & Co., Inc.
NEUTRAL
Price
$121.25
Market Cap
$299.79B
Sector
Healthcare
AI Confidence
90%

Valuation

P/E Ratio
CAH
28.76
MRK
16.66
Forward P/E
CAH
17.25
MRK
12.42
P/B Ratio
CAH
-16.35
MRK
5.7
P/S Ratio
CAH
0.19
MRK
4.61
EV/EBITDA
CAH
13.98
MRK
11.46

Profitability

Gross Margin
CAH
3.69%
MRK
77.21%
Operating Margin
CAH
1.23%
MRK
32.77%
Profit Margin
CAH
0.68%
MRK
28.08%
ROE
CAH
--
MRK
36.88%
ROA
CAH
3.5%
MRK
12.04%

Growth

Revenue Growth
CAH
18.8%
MRK
5.0%
Earnings Growth
CAH
19.4%
MRK
-19.3%

Financial Health

Debt/Equity
CAH
--
MRK
0.96
Current Ratio
CAH
0.91
MRK
1.54
Quick Ratio
CAH
0.38
MRK
0.96

Dividends

Dividend Yield
CAH
1.02%
MRK
2.83%
Payout Ratio
CAH
29.32%
MRK
45.05%

AI Verdict

CAH NEUTRAL

Cardinal Health presents a dichotomy of strong growth and fragile liquidity, anchored by a stable Piotroski F-Score of 4/9. While the company exhibits impressive YoY revenue and earnings growth (~19%) and consistently beats analyst estimates, its operational health is hampered by razor-thin profit margins (0.68%) and a concerning current ratio of 0.91. The stock is trading slightly below its intrinsic value of $205.03, but bearish insider activity and a 0/100 technical trend suggest immediate headwinds despite a 'strong_buy' analyst consensus.

Strengths
Strong YoY revenue growth of 18.80%
Consistent earnings beat track record over 25 quarters
Significant forward P/E compression (from 28.76 to 17.25)
Risks
Extremely thin profit margins (0.68%) leave little room for error
Liquidity risk indicated by a Quick Ratio of 0.38
Current Ratio below 1.0 (0.91) suggests potential short-term obligations pressure
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

CAH vs MRK: Head-to-Head Comparison

This page compares Cardinal Health, Inc. (CAH) 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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