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LH vs. MRK: A Head-to-Head Stock Comparison

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Here’s a clear look at LH and MRK, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolLHMRK
Company NameLabcorp Holdings Inc.Merck & Co., Inc.
CountryUnited StatesUnited States
GICS SectorHealth CareHealth Care
GICS IndustryHealth Care Providers & ServicesPharmaceuticals
Market Capitalization22.18 billion USD235.17 billion USD
ExchangeNYSENYSE
Listing DateMarch 29, 1990January 2, 1962
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of LH and MRK by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

LH vs. MRK: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolLHMRK
5-Day Price Return2.21%7.11%
13-Week Price Return-1.29%10.34%
26-Week Price Return6.75%21.26%
52-Week Price Return8.39%-5.67%
Month-to-Date Return5.09%8.07%
Year-to-Date Return16.38%-6.59%
10-Day Avg. Volume1.27M12.87M
3-Month Avg. Volume0.72M12.04M
3-Month Volatility24.68%29.28%
Beta0.980.30

Profitability

Return on Equity (TTM)

LH

10.20%

Health Care Providers & Services Industry

Max
24.67%
Q3
15.54%
Median
8.37%
Q1
5.49%
Min
-2.09%

LH’s Return on Equity of 10.20% is on par with the norm for the Health Care Providers & Services industry, indicating its profitability relative to shareholder equity is typical for the sector.

MRK

38.95%

Pharmaceuticals Industry

Max
38.95%
Q3
20.34%
Median
11.59%
Q1
3.32%
Min
-10.91%

In the upper quartile for the Pharmaceuticals industry, MRK’s Return on Equity of 38.95% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

LH vs. MRK: A comparison of their Return on Equity (TTM) against their respective Health Care Providers & Services and Pharmaceuticals industry benchmarks.

Net Profit Margin (TTM)

LH

6.21%

Health Care Providers & Services Industry

Max
9.33%
Q3
4.80%
Median
2.90%
Q1
0.93%
Min
-3.28%

A Net Profit Margin of 6.21% places LH in the upper quartile for the Health Care Providers & Services industry, signifying strong profitability and more effective cost management than most of its peers.

MRK

29.63%

Pharmaceuticals Industry

Max
39.07%
Q3
19.28%
Median
13.48%
Q1
5.73%
Min
-8.86%

A Net Profit Margin of 29.63% places MRK in the upper quartile for the Pharmaceuticals industry, signifying strong profitability and more effective cost management than most of its peers.

LH vs. MRK: A comparison of their Net Profit Margin (TTM) against their respective Health Care Providers & Services and Pharmaceuticals industry benchmarks.

Operating Profit Margin (TTM)

LH

9.69%

Health Care Providers & Services Industry

Max
18.35%
Q3
8.71%
Median
5.10%
Q1
2.10%
Min
-3.07%

An Operating Profit Margin of 9.69% places LH in the upper quartile for the Health Care Providers & Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

MRK

33.73%

Pharmaceuticals Industry

Max
45.58%
Q3
24.35%
Median
18.05%
Q1
7.58%
Min
-11.88%

An Operating Profit Margin of 33.73% places MRK in the upper quartile for the Pharmaceuticals industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

LH vs. MRK: A comparison of their Operating Profit Margin (TTM) against their respective Health Care Providers & Services and Pharmaceuticals industry benchmarks.

Profitability at a Glance

SymbolLHMRK
Return on Equity (TTM)10.20%38.95%
Return on Assets (TTM)4.73%15.88%
Net Profit Margin (TTM)6.21%29.63%
Operating Profit Margin (TTM)9.69%33.73%
Gross Profit Margin (TTM)28.45%78.72%

Financial Strength

Current Ratio (MRQ)

LH

1.55

Health Care Providers & Services Industry

Max
2.00
Q3
1.56
Median
1.28
Q1
0.92
Min
0.01

LH’s Current Ratio of 1.55 aligns with the median group of the Health Care Providers & Services industry, indicating that its short-term liquidity is in line with its sector peers.

MRK

1.66

Pharmaceuticals Industry

Max
5.45
Q3
2.99
Median
1.98
Q1
1.29
Min
0.78

MRK’s Current Ratio of 1.66 aligns with the median group of the Pharmaceuticals industry, indicating that its short-term liquidity is in line with its sector peers.

LH vs. MRK: A comparison of their Current Ratio (MRQ) against their respective Health Care Providers & Services and Pharmaceuticals industry benchmarks.

Debt-to-Equity Ratio (MRQ)

LH

0.65

Health Care Providers & Services Industry

Max
2.41
Q3
1.39
Median
0.74
Q1
0.46
Min
0.00

LH’s Debt-to-Equity Ratio of 0.65 is typical for the Health Care Providers & Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

MRK

0.80

Pharmaceuticals Industry

Max
1.79
Q3
0.78
Median
0.31
Q1
0.08
Min
0.00

MRK’s leverage is in the upper quartile of the Pharmaceuticals industry, with a Debt-to-Equity Ratio of 0.80. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

LH vs. MRK: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Health Care Providers & Services and Pharmaceuticals industry benchmarks.

Interest Coverage Ratio (TTM)

LH

5.73

Health Care Providers & Services Industry

Max
14.47
Q3
7.46
Median
4.52
Q1
2.04
Min
-4.44

LH’s Interest Coverage Ratio of 5.73 is positioned comfortably within the norm for the Health Care Providers & Services industry, indicating a standard and healthy capacity to cover its interest payments.

MRK

19.65

Pharmaceuticals Industry

Max
103.95
Q3
43.60
Median
10.15
Q1
2.37
Min
-42.71

MRK’s Interest Coverage Ratio of 19.65 is positioned comfortably within the norm for the Pharmaceuticals industry, indicating a standard and healthy capacity to cover its interest payments.

LH vs. MRK: A comparison of their Interest Coverage Ratio (TTM) against their respective Health Care Providers & Services and Pharmaceuticals industry benchmarks.

Financial Strength at a Glance

SymbolLHMRK
Current Ratio (MRQ)1.551.66
Quick Ratio (MRQ)1.091.44
Debt-to-Equity Ratio (MRQ)0.650.80
Interest Coverage Ratio (TTM)5.7319.65

Growth

Revenue Growth

LH vs. MRK: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

LH vs. MRK: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

LH

1.11%

Health Care Providers & Services Industry

Max
5.51%
Q3
2.66%
Median
1.06%
Q1
0.00%
Min
0.00%

LH’s Dividend Yield of 1.11% is consistent with its peers in the Health Care Providers & Services industry, providing a dividend return that is standard for its sector.

MRK

3.52%

Pharmaceuticals Industry

Max
6.72%
Q3
3.48%
Median
1.90%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 3.52%, MRK offers a more attractive income stream than most of its peers in the Pharmaceuticals industry, signaling a strong commitment to shareholder returns.

LH vs. MRK: A comparison of their Dividend Yield (TTM) against their respective Health Care Providers & Services and Pharmaceuticals industry benchmarks.

Dividend Payout Ratio (TTM)

LH

28.24%

Health Care Providers & Services Industry

Max
187.56%
Q3
81.14%
Median
33.42%
Q1
0.00%
Min
0.00%

LH’s Dividend Payout Ratio of 28.24% is within the typical range for the Health Care Providers & Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

MRK

42.60%

Pharmaceuticals Industry

Max
199.58%
Q3
85.87%
Median
49.36%
Q1
1.12%
Min
0.00%

MRK’s Dividend Payout Ratio of 42.60% is within the typical range for the Pharmaceuticals industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

LH vs. MRK: A comparison of their Dividend Payout Ratio (TTM) against their respective Health Care Providers & Services and Pharmaceuticals industry benchmarks.

Dividend at a Glance

SymbolLHMRK
Dividend Yield (TTM)1.11%3.52%
Dividend Payout Ratio (TTM)28.24%42.60%

Valuation

Price-to-Earnings Ratio (TTM)

LH

25.34

Health Care Providers & Services Industry

Max
48.86
Q3
32.22
Median
21.78
Q1
13.97
Min
8.01

LH’s P/E Ratio of 25.34 is within the middle range for the Health Care Providers & Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

MRK

12.12

Pharmaceuticals Industry

Max
52.64
Q3
29.89
Median
20.77
Q1
13.37
Min
5.71

In the lower quartile for the Pharmaceuticals industry, MRK’s P/E Ratio of 12.12 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

LH vs. MRK: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Health Care Providers & Services and Pharmaceuticals industry benchmarks.

Price-to-Sales Ratio (TTM)

LH

1.57

Health Care Providers & Services Industry

Max
3.66
Q3
1.64
Median
0.72
Q1
0.27
Min
0.10

LH’s P/S Ratio of 1.57 aligns with the market consensus for the Health Care Providers & Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

MRK

3.59

Pharmaceuticals Industry

Max
8.74
Q3
4.66
Median
2.37
Q1
1.67
Min
0.11

MRK’s P/S Ratio of 3.59 aligns with the market consensus for the Pharmaceuticals industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

LH vs. MRK: A comparison of their Price-to-Sales Ratio (TTM) against their respective Health Care Providers & Services and Pharmaceuticals industry benchmarks.

Price-to-Book Ratio (MRQ)

LH

2.74

Health Care Providers & Services Industry

Max
7.33
Q3
4.33
Median
2.48
Q1
1.31
Min
0.65

LH’s P/B Ratio of 2.74 is within the conventional range for the Health Care Providers & Services industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

MRK

4.04

Pharmaceuticals Industry

Max
9.86
Q3
5.28
Median
2.48
Q1
1.57
Min
0.59

MRK’s P/B Ratio of 4.04 is within the conventional range for the Pharmaceuticals industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

LH vs. MRK: A comparison of their Price-to-Book Ratio (MRQ) against their respective Health Care Providers & Services and Pharmaceuticals industry benchmarks.

Valuation at a Glance

SymbolLHMRK
Price-to-Earnings Ratio (TTM)25.3412.12
Price-to-Sales Ratio (TTM)1.573.59
Price-to-Book Ratio (MRQ)2.744.04
Price-to-Free Cash Flow Ratio (TTM)14.5617.67