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HSTM vs MRK

HSTM
HealthStream, Inc.
BEARISH
Price
$19.88
Market Cap
$589.8M
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
HSTM
32.59
MRK
16.66
Forward P/E
HSTM
23.12
MRK
12.42
P/B Ratio
HSTM
1.66
MRK
5.7
P/S Ratio
HSTM
1.94
MRK
4.61
EV/EBITDA
HSTM
14.2
MRK
11.46

Profitability

Gross Margin
HSTM
64.74%
MRK
77.21%
Operating Margin
HSTM
3.64%
MRK
32.77%
Profit Margin
HSTM
6.03%
MRK
28.08%
ROE
HSTM
5.14%
MRK
36.88%
ROA
HSTM
2.51%
MRK
12.04%

Growth

Revenue Growth
HSTM
7.4%
MRK
5.0%
Earnings Growth
HSTM
-46.5%
MRK
-19.3%

Financial Health

Debt/Equity
HSTM
0.05
MRK
0.96
Current Ratio
HSTM
0.96
MRK
1.54
Quick Ratio
HSTM
0.77
MRK
0.96

Dividends

Dividend Yield
HSTM
0.64%
MRK
2.83%
Payout Ratio
HSTM
20.33%
MRK
45.05%

AI Verdict

HSTM BEARISH

HSTM presents a contradictory profile: while the Piotroski F-Score of 7/9 indicates strong fundamental health and a clean balance sheet, the valuation is severely disconnected from intrinsic reality. The stock trades at $19.88, significantly above both its Graham Number ($12.82) and its growth-based intrinsic value ($4.27). This valuation gap is exacerbated by a collapse in earnings growth (-46.5% YoY) and a completely bearish technical trend (0/100). Despite low debt, the combination of crashing profitability and insider selling suggests a value trap scenario.

Strengths
Strong Piotroski F-Score (7/9) indicating operational health
Extremely low Debt/Equity ratio (0.05)
High Gross Margins (64.74%)
Risks
Severe earnings contraction (-46.5% YoY)
Significant overvaluation relative to Graham Number and Intrinsic Value
Bearish technical momentum (0/100 trend score)
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

HSTM vs MRK: Head-to-Head Comparison

This page compares HealthStream, Inc. (HSTM) 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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