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CHE vs MRK

CHE
Chemed Corporation
BEARISH
Price
$421.11
Market Cap
$5.65B
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
CHE
22.99
MRK
16.66
Forward P/E
CHE
15.75
MRK
12.42
P/B Ratio
CHE
5.9
MRK
5.7
P/S Ratio
CHE
2.23
MRK
4.61
EV/EBITDA
CHE
13.21
MRK
11.46

Profitability

Gross Margin
CHE
32.54%
MRK
77.21%
Operating Margin
CHE
16.62%
MRK
32.77%
Profit Margin
CHE
10.48%
MRK
28.08%
ROE
CHE
25.28%
MRK
36.88%
ROA
CHE
13.4%
MRK
12.04%

Growth

Revenue Growth
CHE
-0.1%
MRK
5.0%
Earnings Growth
CHE
-9.1%
MRK
-19.3%

Financial Health

Debt/Equity
CHE
0.15
MRK
0.96
Current Ratio
CHE
1.05
MRK
1.54
Quick Ratio
CHE
0.9
MRK
0.96

Dividends

Dividend Yield
CHE
0.6%
MRK
2.83%
Payout Ratio
CHE
12.0%
MRK
45.05%

AI Verdict

CHE BEARISH

Chemed Corporation exhibits a stark divergence between its fundamental valuation and current market price, trading at a massive premium to its Graham Number ($171.6) and Intrinsic Value ($128.24). While the company maintains a stable Piotroski F-Score of 4/9 and an exceptionally low Debt/Equity ratio of 0.15, these health metrics are offset by negative YoY revenue and earnings growth. The combination of declining profitability, bearish insider activity from the CEO, and a valuation that is nearly 2.5x its defensive fair value suggests significant downside risk.

Strengths
Very low leverage with a Debt/Equity ratio of 0.15
Strong profitability metrics with ROE at 25.28% and ROA at 13.40%
Healthy operating margins of 16.62%
Risks
Severe overvaluation relative to Graham and Intrinsic value models
Negative growth trajectory (YoY Earnings Growth: -9.10%)
Bearish insider sentiment with multiple CEO sell transactions
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

CHE vs MRK: Head-to-Head Comparison

This page compares Chemed Corporation (CHE) 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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