Ambev SA ADR (ABEV)vsMerck & Company Inc (MRK)
ABEV
Ambev SA ADR
$3.29
+0.30%
CONSUMER DEFENSIVE · Cap: $53.50B
MRK
Merck & Company Inc
$111.38
-0.82%
HEALTHCARE · Cap: $277.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Ambev SA ADR generates 34% more annual revenue ($88.21B vs $65.77B). ABEV leads profitability with a 17.7% profit margin vs 13.6%. ABEV appears more attractively valued with a PEG of 2.31. ABEV earns a higher WallStSmart Score of 57/100 (C).
ABEV
Buy57
out of 100
Grade: C
MRK
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+74.4%
Fair Value
$11.91
Current Price
$3.29
$8.62 discount
Margin of Safety
-14.9%
Fair Value
$97.76
Current Price
$111.38
$13.62 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Generating 11.6B in free cash flow
Large-cap with strong market position
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 26.5%
Mega-cap, among the largest globally
Strong operational efficiency at 38.6%
Generating 2.9B in free cash flow
Areas to Watch
Expensive relative to growth rate
2.2% earnings growth
Revenue declined 0.1%
Premium valuation, high expectations priced in
4.9% revenue growth
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : ABEV
The strongest argument for ABEV centers on Free Cash Flow, Market Cap, P/E Ratio. Profitability is solid with margins at 17.7% and operating margin at 26.5%.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bear Case : ABEV
The primary concerns for ABEV are PEG Ratio, EPS Growth, Revenue Growth.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Piotroski F-Score.
Key Dynamics to Monitor
ABEV profiles as a declining stock while MRK is a value play — different risk/reward profiles.
ABEV carries more volatility with a beta of 0.23 — expect wider price swings.
MRK is growing revenue faster at 4.9% — sustainability is the question.
ABEV generates stronger free cash flow (11.6B), providing more financial flexibility.
Bottom Line
ABEV scores higher overall (57/100 vs 50/100), backed by strong 17.7% margins. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Ambev SA ADR
CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA
Ambev SA produces, distributes and sells beer, draft beer, carbonated soft drinks (CSD), other non-alcoholic beverages, malt and food products in the Americas. The company is headquartered in So Paulo, Brazil.
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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