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LFST vs MRK

LFST
LifeStance Health Group, Inc.
NEUTRAL
Price
$6.40
Market Cap
$2.45B
Sector
Healthcare
AI Confidence
80%
MRK
Merck & Co., Inc.
NEUTRAL
Price
$121.25
Market Cap
$299.79B
Sector
Healthcare
AI Confidence
90%

Valuation

P/E Ratio
LFST
320.0
MRK
16.66
Forward P/E
LFST
16.74
MRK
12.42
P/B Ratio
LFST
1.63
MRK
5.7
P/S Ratio
LFST
1.72
MRK
4.61
EV/EBITDA
LFST
34.04
MRK
11.46

Profitability

Gross Margin
LFST
32.37%
MRK
77.21%
Operating Margin
LFST
4.74%
MRK
32.77%
Profit Margin
LFST
0.68%
MRK
28.08%
ROE
LFST
0.65%
MRK
36.88%
ROA
LFST
0.73%
MRK
12.04%

Growth

Revenue Growth
LFST
17.4%
MRK
5.0%
Earnings Growth
LFST
--
MRK
-19.3%

Financial Health

Debt/Equity
LFST
0.31
MRK
0.96
Current Ratio
LFST
1.65
MRK
1.54
Quick Ratio
LFST
1.38
MRK
0.96

Dividends

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

AI Verdict

LFST NEUTRAL

LFST presents a stable but precarious financial profile with a Piotroski F-Score of 4/9 and no Altman Z-Score provided for bankruptcy risk assessment. While the company has successfully transitioned toward profitability with a promising forward P/E of 16.74, it trades at a massive premium compared to its Graham Number ($1.33) and Intrinsic Value ($0.14). Strong revenue growth of 17.4% is offset by razor-thin profit margins (0.68%) and aggressive insider selling totaling $32.51M. The stock is currently a speculative play on earnings expansion rather than a value-driven investment.

Strengths
Low Debt/Equity ratio of 0.31 indicating manageable leverage
Consistent revenue growth of 17.4% YoY and Q/Q
Successful transition from historical losses to positive EPS
Risks
Extreme trailing P/E ratio of 320.00
Heavy insider selling totaling $32.51M in the last 6 months
Razor-thin net profit margins of 0.68%
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

LFST vs MRK: Head-to-Head Comparison

This page compares LifeStance Health Group, Inc. (LFST) 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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