No connection

Search Results

COR vs MRK

COR
Cencora, Inc.
NEUTRAL
Price
$361.94
Market Cap
$70.85B
Sector
Healthcare
AI Confidence
65%
MRK
Merck & Co., Inc.
NEUTRAL
Price
$121.25
Market Cap
$299.79B
Sector
Healthcare
AI Confidence
90%

Valuation

P/E Ratio
COR
45.47
MRK
16.66
Forward P/E
COR
22.12
MRK
12.42
P/B Ratio
COR
40.17
MRK
5.7
P/S Ratio
COR
0.22
MRK
4.61
EV/EBITDA
COR
15.32
MRK
11.46

Profitability

Gross Margin
COR
3.51%
MRK
77.21%
Operating Margin
COR
1.14%
MRK
32.77%
Profit Margin
COR
0.48%
MRK
28.08%
ROE
COR
123.75%
MRK
36.88%
ROA
COR
3.26%
MRK
12.04%

Growth

Revenue Growth
COR
5.9%
MRK
5.0%
Earnings Growth
COR
--
MRK
-19.3%

Financial Health

Debt/Equity
COR
4.38
MRK
0.96
Current Ratio
COR
0.9
MRK
1.54
Quick Ratio
COR
0.51
MRK
0.96

Dividends

Dividend Yield
COR
0.66%
MRK
2.83%
Payout Ratio
COR
27.64%
MRK
45.05%

AI Verdict

COR NEUTRAL

Cencora (COR) trades at a premium valuation with strong 5-year price performance (+271.1%) and solid earnings growth (YoY EPS +15.0%), supported by consistent quarterly beats (22 of 25 quarters) and improving margins. However, its profitability metrics remain weak relative to peers—particularly gross margin (3.51%) and operating margin (1.14%)—while elevated leverage (Debt/Equity 4.38) and deteriorating liquidity (Current Ratio 0.90) raise structural concerns. The stock is priced for perfection with a P/E of 45.47, well above the sector average of 36.87, despite lower-than-peer revenue growth (5.9% vs 10.5%). Notably, recent insider selling totaling $18.51M over the past six months contrasts with a bullish analyst consensus, creating a mixed signal that tempers enthusiasm.

Strengths
Consistent earnings outperformance: 22 of 25 quarters beat estimates, with an average surprise of 4.53% over the last four quarters
Strong long-term price momentum: +271.1% return over 5 years, significantly outperforming most healthcare peers
High ROE of 123.75% suggests efficient use of equity capital, likely amplified by high financial leverage
Risks
Extremely high leverage with Debt/Equity of 4.38, more than triple the sector average of 1.18, increasing refinancing and interest rate risk
Deteriorating liquidity: Current Ratio of 0.90 and Quick Ratio of 0.51 indicate potential near-term solvency pressure
Very low profitability: Gross margin of 3.51% and operating margin of 1.14% are far below sector averages of 14.05% and ~20%, respectively
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

COR vs MRK: Head-to-Head Comparison

This page compares Cencora, Inc. (COR) 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.

Home
Terminal
AI Chat
Markets
Profile