AbbVie Inc (ABBV)vsMerck & Company Inc (MRK)
ABBV
AbbVie Inc
$206.60
-2.23%
HEALTHCARE · Cap: $360.63B
MRK
Merck & Company Inc
$112.16
+2.73%
HEALTHCARE · Cap: $274.03B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 6% more annual revenue ($65.01B vs $61.16B). MRK leads profitability with a 28.1% profit margin vs 6.9%. ABBV appears more attractively valued with a PEG of 0.48. ABBV earns a higher WallStSmart Score of 63/100 (C+).
ABBV
Buy63
out of 100
Grade: C+
MRK
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-26.3%
Fair Value
$163.59
Current Price
$206.60
$43.01 premium
Margin of Safety
-16.2%
Fair Value
$96.56
Current Price
$112.16
$15.60 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Growing faster than its price suggests
Every $100 of equity generates 62 in profit
Strong operational efficiency at 34.1%
Conservative balance sheet, low leverage
Generating 4.9B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 37 in profit
Strong operational efficiency at 32.8%
Keeps 28 of every $100 in revenue as profit
Attractively priced relative to earnings
Generating 1.8B in free cash flow
Areas to Watch
6.9% margin — thin
Premium valuation, high expectations priced in
Earnings declined 88.7%
Distress zone — elevated risk
Weak financial health signals
Expensive relative to growth rate
Earnings declined 19.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : ABBV
The strongest argument for ABBV centers on Market Cap, PEG Ratio, Return on Equity. PEG of 0.48 suggests the stock is reasonably priced for its growth.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 28.1% and operating margin at 32.8%.
Bear Case : ABBV
The primary concerns for ABBV are Profit Margin, P/E Ratio, EPS Growth. A P/E of 100.0x leaves little room for execution misses.
Bear Case : MRK
The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
ABBV carries more volatility with a beta of 0.36 — expect wider price swings.
ABBV is growing revenue faster at 10.0% — sustainability is the question.
ABBV generates stronger free cash flow (4.9B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ABBV scores higher overall (63/100 vs 59/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
AbbVie Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
AbbVie is an American publicly traded biopharmaceutical company founded in 2013. It originated as a spin-off of Abbott Laboratories.
Merck & Company Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Merck & Co. is an American multinational pharmaceutical company headquartered in Kenilworth, New Jersey. It is named after the Merck family, which set up Merck Group in Germany in 1668.
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