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EHAB vs MRK

EHAB
Enhabit, Inc.
BEARISH
Price
$13.74
Market Cap
$703.8M
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
EHAB
--
MRK
16.66
Forward P/E
EHAB
22.12
MRK
12.42
P/B Ratio
EHAB
1.31
MRK
5.7
P/S Ratio
EHAB
0.66
MRK
4.61
EV/EBITDA
EHAB
13.71
MRK
11.46

Profitability

Gross Margin
EHAB
49.04%
MRK
77.21%
Operating Margin
EHAB
5.33%
MRK
32.77%
Profit Margin
EHAB
-0.43%
MRK
28.08%
ROE
EHAB
-0.46%
MRK
36.88%
ROA
EHAB
3.33%
MRK
12.04%

Growth

Revenue Growth
EHAB
4.7%
MRK
5.0%
Earnings Growth
EHAB
--
MRK
-19.3%

Financial Health

Debt/Equity
EHAB
0.89
MRK
0.96
Current Ratio
EHAB
1.63
MRK
1.54
Quick Ratio
EHAB
1.49
MRK
0.96

Dividends

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

AI Verdict

EHAB BEARISH

EHAB exhibits severe fundamental weakness, highlighted by a Piotroski F-Score of 2/9, indicating poor financial health and operational deterioration. While the stock has seen a significant 1-year price surge (+78.4%), this momentum is disconnected from core profitability, as evidenced by a negative profit margin (-0.43%) and negative ROE (-0.46%). The lack of a Graham Number and the absence of an Altman Z-Score, combined with bearish insider selling, suggest a speculative valuation. The recent price action likely reflects merger speculation mentioned in SEC filings rather than organic growth.

Strengths
Strong 1-year price momentum (+78.4%)
Low Price-to-Sales ratio (0.66)
Healthy liquidity ratios (Current Ratio 1.63, Quick Ratio 1.49)
Risks
Critical financial health failure (Piotroski F-Score 2/9)
Negative net profit margins and negative Return on Equity
Stagnant revenue growth (4.70% YoY)
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

EHAB vs MRK: Head-to-Head Comparison

This page compares Enhabit, Inc. (EHAB) 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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