No connection

Search Results

EHC vs MRK

EHC
Encompass Health Corporation
BULLISH
Price
$101.98
Market Cap
$10.14B
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
EHC
18.37
MRK
16.66
Forward P/E
EHC
15.74
MRK
12.42
P/B Ratio
EHC
4.18
MRK
5.7
P/S Ratio
EHC
1.71
MRK
4.61
EV/EBITDA
EHC
9.86
MRK
11.46

Profitability

Gross Margin
EHC
43.21%
MRK
77.21%
Operating Margin
EHC
18.35%
MRK
32.77%
Profit Margin
EHC
9.54%
MRK
28.08%
ROE
EHC
24.82%
MRK
36.88%
ROA
EHC
9.66%
MRK
12.04%

Growth

Revenue Growth
EHC
9.9%
MRK
5.0%
Earnings Growth
EHC
21.2%
MRK
-19.3%

Financial Health

Debt/Equity
EHC
0.83
MRK
0.96
Current Ratio
EHC
1.08
MRK
1.54
Quick Ratio
EHC
0.83
MRK
0.96

Dividends

Dividend Yield
EHC
0.75%
MRK
2.83%
Payout Ratio
EHC
12.97%
MRK
45.05%

AI Verdict

EHC BULLISH

EHC presents a stable financial profile with a Piotroski F-Score of 4/9 and a significant valuation gap between its defensive Graham Number ($55.18) and growth-based Intrinsic Value ($163.72). The company exhibits exceptional operational efficiency with an ROE of 24.82% and a highly attractive PEG ratio of 0.41, suggesting the stock is undervalued relative to its earnings growth. While insider sentiment is bearish and technical trends are currently weak, the long-term fundamental trajectory is supported by a 25-quarter track record of consistent earnings beats. The current price of $101.98 represents a reasonable entry point given the analyst target of $142.73.

Strengths
Exceptional earnings track record with consistent beats over 25 quarters
Very low PEG ratio (0.41) indicating strong growth at a reasonable price
High Return on Equity (24.82%) demonstrating efficient capital use
Risks
Bearish insider activity with significant selling by the CEO and other officers
Weak technical trend (0/100) indicating short-term price momentum is negative
Tight liquidity with a current ratio of 1.08
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

EHC vs MRK: Head-to-Head Comparison

This page compares Encompass Health Corporation (EHC) 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