WallStSmart

ACADIA Pharmaceuticals Inc (ACAD)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 5967% more annual revenue ($65.01B vs $1.07B). ACAD leads profitability with a 36.5% profit margin vs 28.1%. MRK appears more attractively valued with a PEG of 3.36. ACAD earns a higher WallStSmart Score of 63/100 (C+).

ACAD

Buy

63

out of 100

Grade: C+

Growth: 8.7Profit: 8.0Value: 5.7Quality: 6.0
Piotroski: 3/9

MRK

Buy

59

out of 100

Grade: C

Growth: 4.0Profit: 9.5Value: 4.7Quality: 4.8
Piotroski: 3/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ACAD.

MRKOvervalued (-13.2%)

Margin of Safety

-13.2%

Fair Value

$96.48

Current Price

$109.18

$12.70 premium

UndervaluedFair: $96.48Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACAD4 strengths · Avg: 10.0/10
P/E RatioValuation
9.7x10/10

Attractively priced relative to earnings

Return on EquityProfitability
39.9%10/10

Every $100 of equity generates 40 in profit

Profit MarginProfitability
36.5%10/10

Keeps 37 of every $100 in revenue as profit

EPS GrowthGrowth
86.2%10/10

Earnings expanding 86.2% YoY

MRK6 strengths · Avg: 9.2/10
Market CapQuality
$274.03B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
36.9%10/10

Every $100 of equity generates 37 in profit

Operating MarginProfitability
32.8%10/10

Strong operational efficiency at 32.8%

Profit MarginProfitability
28.1%9/10

Keeps 28 of every $100 in revenue as profit

P/E RatioValuation
15.2x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.82B8/10

Generating 1.8B in free cash flow

Areas to Watch

ACAD3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
50.862/10

Expensive relative to growth rate

Free Cash FlowQuality
$-52.74M2/10

Negative free cash flow — burning cash

MRK3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.362/10

Expensive relative to growth rate

EPS GrowthGrowth
-19.3%2/10

Earnings declined 19.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : ACAD

The strongest argument for ACAD centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 36.5% and operating margin at 6.1%.

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 : ACAD

The primary concerns for ACAD are Piotroski F-Score, PEG Ratio, Free Cash Flow.

Bear Case : MRK

The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.

Key Dynamics to Monitor

ACAD profiles as a mature stock while MRK is a value play — different risk/reward profiles.

ACAD carries more volatility with a beta of 0.83 — expect wider price swings.

ACAD is growing revenue faster at 9.4% — sustainability is the question.

MRK generates stronger free cash flow (1.8B), providing more financial flexibility.

Bottom Line

ACAD scores higher overall (63/100 vs 59/100), backed by strong 36.5% margins. 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.

ACADIA Pharmaceuticals Inc

HEALTHCARE · BIOTECHNOLOGY · USA

ACADIA Pharmaceuticals Inc., a biopharmaceutical company, focuses on the development and commercialization of small molecule drugs that address unmet medical needs in central nervous system disorders. The company is headquartered in San Diego, California.

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 →

Want to dig deeper into these stocks?