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ELV vs MRK

ELV
Elevance Health, Inc.
NEUTRAL
Price
$328.11
Market Cap
$72.42B
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
ELV
13.02
MRK
16.66
Forward P/E
ELV
11.29
MRK
12.42
P/B Ratio
ELV
1.65
MRK
5.7
P/S Ratio
ELV
0.36
MRK
4.61
EV/EBITDA
ELV
7.65
MRK
11.46

Profitability

Gross Margin
ELV
25.56%
MRK
77.21%
Operating Margin
ELV
1.54%
MRK
32.77%
Profit Margin
ELV
2.84%
MRK
28.08%
ROE
ELV
13.25%
MRK
36.88%
ROA
ELV
4.35%
MRK
12.04%

Growth

Revenue Growth
ELV
9.5%
MRK
5.0%
Earnings Growth
ELV
36.3%
MRK
-19.3%

Financial Health

Debt/Equity
ELV
0.74
MRK
0.96
Current Ratio
ELV
1.53
MRK
1.54
Quick Ratio
ELV
1.41
MRK
0.96

Dividends

Dividend Yield
ELV
2.15%
MRK
2.83%
Payout Ratio
ELV
27.13%
MRK
45.05%

AI Verdict

ELV NEUTRAL

Elevance Health presents a complex value proposition characterized by a weak Piotroski F-Score of 3/9, indicating deteriorating fundamental health. While the stock is objectively undervalued, trading below its Graham Number ($340.31) and significantly below its intrinsic value ($763.75), recent financial performance is concerning with a -44.8% Q/Q EPS decline. The combination of bearish technicals and insider selling offsets the attractive valuation and strong analyst buy ratings. Consequently, the stock appears to be in a transition phase where deep value meets fundamental weakness.

Strengths
Trading below Graham Number ($340.31), suggesting defensive undervaluation
Low P/E ratio (13.02) and Forward P/E (11.29) relative to historical norms
Sustainable dividend profile with a low payout ratio of 27.13%
Risks
Weak fundamental health as evidenced by a Piotroski F-Score of 3/9
Sharp recent decline in earnings growth (-44.8% Q/Q EPS growth)
Bearish technical trend (0/100) and negative 1-year price performance (-17.6%)
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

ELV vs MRK: Head-to-Head Comparison

This page compares Elevance Health, Inc. (ELV) 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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