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EVH vs MRK

EVH
Evolent Health, Inc.
BEARISH
Price
$3.13
Market Cap
$349.4M
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
EVH
--
MRK
16.66
Forward P/E
EVH
7.09
MRK
12.42
P/B Ratio
EVH
0.84
MRK
5.7
P/S Ratio
EVH
0.19
MRK
4.61
EV/EBITDA
EVH
13.46
MRK
11.46

Profitability

Gross Margin
EVH
21.31%
MRK
77.21%
Operating Margin
EVH
-2.06%
MRK
32.77%
Profit Margin
EVH
-28.49%
MRK
28.08%
ROE
EVH
-66.54%
MRK
36.88%
ROA
EVH
-0.12%
MRK
12.04%

Growth

Revenue Growth
EVH
-27.5%
MRK
5.0%
Earnings Growth
EVH
--
MRK
-19.3%

Financial Health

Debt/Equity
EVH
2.38
MRK
0.96
Current Ratio
EVH
1.31
MRK
1.54
Quick Ratio
EVH
1.2
MRK
0.96

Dividends

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

AI Verdict

EVH BEARISH

EVH exhibits severe fundamental deterioration, highlighted by a weak Piotroski F-Score of 2/9 and a significant YoY revenue decline of 27.50%. While the stock trades at a low Price-to-Book (0.84) and Price-to-Sales (0.19) ratio, these metrics likely represent a value trap given the negative profit margins (-28.49%) and high debt-to-equity ratio (2.38). Despite a 'Strong Buy' analyst consensus and a target price of $5.18, the deterministic data and long-term price performance (-85.2% over 5 years) suggest a high-risk profile with failing operational momentum.

Strengths
Low Price-to-Sales ratio (0.19) suggests extreme undervaluation relative to revenue
Trading below book value (P/B 0.84)
Current ratio of 1.31 indicates adequate short-term liquidity
Risks
Severe revenue contraction (-27.50% YoY)
Poor financial health as evidenced by Piotroski F-Score of 2/9
High leverage with a Debt/Equity ratio of 2.38
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

EVH vs MRK: Head-to-Head Comparison

This page compares Evolent Health, Inc. (EVH) 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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