Abbott Laboratories (ABT)vsMerck & Company Inc (MRK)
ABT
Abbott Laboratories
$109.96
-3.23%
HEALTHCARE · Cap: $184.98B
MRK
Merck & Company Inc
$146.72
-0.14%
HEALTHCARE · Cap: $368.89B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 40% more annual revenue ($67.38B vs $48.23B). ABT leads profitability with a 9.8% profit margin vs 3.6%. ABT appears more attractively valued with a PEG of 1.52. ABT earns a higher WallStSmart Score of 52/100 (C-).
ABT
Buy52
out of 100
Grade: C-
MRK
Hold44
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-43.6%
Fair Value
$76.57
Current Price
$109.96
$33.39 premium
Margin of Safety
-76.6%
Fair Value
$84.66
Current Price
$146.72
$62.06 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Generating 1.2B in free cash flow
Mega-cap, among the largest globally
Strong operational efficiency at 41.2%
Generating 4.5B in free cash flow
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Earnings declined 43.7%
Trading at 8.6x book value
4.7% revenue growth
ROE of 7.6% — below average capital efficiency
3.6% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : ABT
The strongest argument for ABT centers on Market Cap, Free Cash Flow. Revenue growth of 14.5% demonstrates continued momentum.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bear Case : ABT
The primary concerns for ABT are PEG Ratio, P/E Ratio, EPS Growth.
Bear Case : MRK
The primary concerns for MRK are Price/Book, Revenue Growth, Return on Equity. A P/E of 151.0x leaves little room for execution misses. Thin 3.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
ABT carries more volatility with a beta of 0.58 — expect wider price swings.
ABT is growing revenue faster at 14.5% — sustainability is the question.
MRK generates stronger free cash flow (4.5B), providing more financial flexibility.
Monitor MEDICAL DEVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ABT scores higher overall (52/100 vs 44/100) and 14.5% revenue growth. 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.
Abbott Laboratories
HEALTHCARE · MEDICAL DEVICES · USA
Abbott Laboratories is an American multinational medical devices and health care company with headquarters in Abbott Park, Illinois, United States. The company was founded by Chicago physician Wallace Calvin Abbott in 1888 to formulate known drugs; today, it sells medical devices, diagnostics, branded generic medicines and nutritional products. It split off its research-based pharmaceuticals business into AbbVie in 2013.
Visit Website →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.
Visit Website →Compare with Other MEDICAL DEVICES Stocks
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