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MRK vs UNH

MRK
Merck & Co., Inc.
NEUTRAL
Price
$121.25
Market Cap
$299.79B
Sector
Healthcare
AI Confidence
90%
UNH
UnitedHealth Group Incorporated
NEUTRAL
Price
$323.48
Market Cap
$293.61B
Sector
Healthcare
AI Confidence
85%

Valuation

P/E Ratio
MRK
16.66
UNH
24.43
Forward P/E
MRK
12.42
UNH
16.08
P/B Ratio
MRK
5.7
UNH
3.11
P/S Ratio
MRK
4.61
UNH
0.66
EV/EBITDA
MRK
11.46
UNH
16.47

Profitability

Gross Margin
MRK
77.21%
UNH
18.53%
Operating Margin
MRK
32.77%
UNH
0.34%
Profit Margin
MRK
28.08%
UNH
2.69%
ROE
MRK
36.88%
UNH
12.54%
ROA
MRK
12.04%
UNH
3.9%

Growth

Revenue Growth
MRK
5.0%
UNH
12.3%
Earnings Growth
MRK
-19.3%
UNH
-99.9%

Financial Health

Debt/Equity
MRK
0.96
UNH
0.82
Current Ratio
MRK
1.54
UNH
0.79
Quick Ratio
MRK
0.96
UNH
0.7

Dividends

Dividend Yield
MRK
2.83%
UNH
2.73%
Payout Ratio
MRK
45.05%
UNH
65.99%

AI Verdict

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)
UNH NEUTRAL

UnitedHealth Group presents a conflicted profile with a stable but mediocre Piotroski F-Score of 4/9 and a significant disconnect between current price ($323.48) and defensive fair value (Graham Number: $175.91). While revenue growth remains robust at 12.3%, the company has suffered a catastrophic collapse in YoY earnings growth (-99.9%), suggesting severe short-term headwinds or one-time accounting shocks. Technical trends are currently bearish (0/100), though a recent one-month bounce and a favorable Forward P/E of 16.08 indicate analyst expectations of a recovery. The stock is currently trading at a significant premium to its intrinsic value, relying heavily on its market dominance and future earnings normalization.

Strengths
Strong consistent revenue growth (12.3% YoY)
Manageable Debt/Equity ratio of 0.82
Attractive Forward P/E (16.08) compared to current P/E (24.43)
Risks
Extreme earnings volatility (YoY Earnings Growth -99.9%)
Poor liquidity indicated by a Current Ratio of 0.79
Extremely thin operating margins (0.34%)

Compare Another Pair

MRK vs UNH: Head-to-Head Comparison

This page compares Merck & Co., Inc. (MRK) and UnitedHealth Group Incorporated (UNH) 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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