WallStSmart

Align Technology Inc (ALGN)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 1489% more annual revenue ($65.77B vs $4.14B). MRK leads profitability with a 13.6% profit margin vs 10.0%. ALGN appears more attractively valued with a PEG of 0.80. ALGN earns a higher WallStSmart Score of 56/100 (C).

ALGN

Buy

56

out of 100

Grade: C

Growth: 3.3Profit: 6.5Value: 8.0Quality: 7.0
Piotroski: 4/9Altman Z: 2.76

MRK

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 8.0Value: 2.7Quality: 5.0
Piotroski: 3/9Altman Z: 2.27
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ALGNUndervalued (+32.9%)

Margin of Safety

+32.9%

Fair Value

$294.47

Current Price

$173.66

$120.81 discount

UndervaluedFair: $294.47Overvalued
MRKSignificantly Overvalued (-58.0%)

Margin of Safety

-58.0%

Fair Value

$81.23

Current Price

$128.58

$47.35 premium

UndervaluedFair: $81.23Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ALGN3 strengths · Avg: 8.7/10
Debt/EquityHealth
0.0210/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.808/10

Growing faster than its price suggests

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

MRK3 strengths · Avg: 9.3/10
Market CapQuality
$316.14B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
38.6%10/10

Strong operational efficiency at 38.6%

Free Cash FlowQuality
$2.93B8/10

Generating 2.9B in free cash flow

Areas to Watch

ALGN3 concerns · Avg: 3.3/10
P/E RatioValuation
29.3x4/10

Moderate valuation

Revenue GrowthGrowth
4.3%4/10

4.3% revenue growth

EPS GrowthGrowth
-12.1%2/10

Earnings declined 12.1%

MRK4 concerns · Avg: 3.5/10
P/E RatioValuation
36.0x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

Debt/EquityHealth
1.073/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : ALGN

The strongest argument for ALGN centers on Debt/Equity, PEG Ratio, Price/Book. PEG of 0.80 suggests the stock is reasonably priced for its growth.

Bull Case : MRK

The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.

Bear Case : ALGN

The primary concerns for ALGN are P/E Ratio, Revenue Growth, EPS Growth.

Bear Case : MRK

The primary concerns for MRK are P/E Ratio, Revenue Growth, Debt/Equity.

Key Dynamics to Monitor

ALGN carries more volatility with a beta of 1.67 — expect wider price swings.

MRK is growing revenue faster at 4.9% — sustainability is the question.

MRK generates stronger free cash flow (2.9B), providing more financial flexibility.

Monitor MEDICAL INSTRUMENTS & SUPPLIES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ALGN scores higher overall (56/100 vs 50/100). 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.

Align Technology Inc

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

Align Technology is a manufacturer of 3D digital scanners and the Invisalign clear aligners used in orthodontics. It is headquartered in San Jose, 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.

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