UnitedHealth Group vs Merck & Company: Fair Value & Quality
Both stocks run through our valuation models. Here is how UnitedHealth Group (UNH) and Merck & Company (MRK) compare, as of Aug 14, 2026.
As of Aug 14, 2026, Fair Value Calculator sees UnitedHealth Group as the more attractively valued of the two: UnitedHealth Group trades at $399 versus a fair value of $526 (+32%), while Merck & Company trades at $136 versus $125 (-8%).
UnitedHealth Group
UNH · USD · Health Care
+32%
upside to fair value
undervalued
Price$399
Fair Value$526
Quality62/100
Merck & Company
MRK · USD · Health Care
-8%
upside to fair value
fairly valued
Price$136
Fair Value$125
Quality70/100
Head-to-head numbers
Green value = the better side for that row (for valuation multiples: lower = cheaper).
UnitedHealth GroupMerck & Company
Valuation
31.9×P/E (TTM)39.2×
0.86×P/S (TTM)4.64×
4.09×P/B5.80×
20.2×EV/EBITDA11.4×
1.49×PEG6.10×
2.1%Dividend yield2.6%
$8.84Dividend per share$3.28
Profitability
3%Net margin14%
8%Operating margin39%
12%Return on equity19%
4%Return on assets13%
Growth
2%Revenue growth (YoY)5%
11.4%Avg. growth/yr (3Y)3.1%
11.7%Avg. growth/yr (5Y)9.4%
Balance & size
0.77×Debt / equity0.89×
$384BMarket cap$305B
healthyGrowth qualityhealthy
Even match: 7 to 7 metric wins.
Dash = not meaningfully computable, for example with negative equity.
Quality in detail
The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.
UnitedHealth Groupof which business quality 60 · market factors 79Merck & Companyof which business quality 68 · market factors 86
ProfitabilityMargins and returns on capital today
52
74
Quality GrowthAre margins and returns improving?
48
36
CashflowEarnings quality: real cash, not paper profit
InvestmentDisciplined investing over empire-building
76
71
Low VolatilityCalm price path (market factor)
69
86
MomentumPrice trend over the last 3–12 months (market factor)
81
77
52W MomentumDistance to the 52-week high (market factor)
85
100
Net IssuanceBuybacks instead of dilution
99
91
What the models say
The median fair value (base case) per model family, each in the currency of its trading venue. Green = above the current price, red = below.
UnitedHealth Group
DCF Models$362
Earnings-Based$196
Multiples$259
Asset-Based$69.43
Growth DCF$382
Economic Profit$186
Growth Earnings$292
19 of 24 models see the stock below the current price.
Merck & Company
DCF Models$117
Earnings-Based$62.77
Dividend Discount$60.35
Multiples$122
Asset-Based$14.27
Growth DCF$74.00
Economic Profit$83.85
Growth Earnings$138
19 of 26 models see the stock below the current price.
Scenario ranges
From our cautious bear case to the optimistic bull case. The white tick is the current price: left of fair value means room to run.
UnitedHealth Group
Bear $368Fair Value $526Bull $657
$399 = current price (white tick)
Merck & Company
Bear $70.92Fair Value $125Bull $188
$136 = current price (white tick)
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Ranked within their sector
Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.
UnitedHealth Group · Health Care
Quality score62 · above median
Fair value upside+32% · Top 25%
Merck & Company · Health Care
Quality score70 · Top 25%
Fair value upside-8% · above median
Bottom line
As of Aug 14, 2026, Fair Value Calculator sees UnitedHealth Group as the more attractively valued of the two: UnitedHealth Group trades at $399 versus a fair value of $526 (+32%), while Merck & Company trades at $136 versus $125 (-8%).
Merck & Company has the higher quality score (70/100).
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A model-based valuation snapshot from 21 models. Values change with price and fundamentals; the date shown above applies.
