WallStSmart

Alnylam Pharmaceuticals Inc (ALNY)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 1286% more annual revenue ($66.57B vs $4.80B). ALNY leads profitability with a 16.1% profit margin vs 4.8%. ALNY appears more attractively valued with a PEG of 0.34. ALNY earns a higher WallStSmart Score of 68/100 (B-).

ALNY

Strong Buy

68

out of 100

Grade: B-

Growth: 8.0Profit: 8.5Value: 8.0Quality: 6.0
Piotroski: 4/9Altman Z: -0.02

MRK

Hold

36

out of 100

Grade: F

Growth: 4.0Profit: 4.5Value: 2.0Quality: 5.0
Piotroski: 3/9Altman Z: 2.27
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ALNYUndervalued (+87.5%)

Margin of Safety

+87.5%

Fair Value

$2584.41

Current Price

$248.68

$2335.73 discount

UndervaluedFair: $2584.41Overvalued
MRKSignificantly Overvalued (-73.7%)

Margin of Safety

-73.7%

Fair Value

$82.84

Current Price

$144.85

$62.01 premium

UndervaluedFair: $82.84Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ALNY3 strengths · Avg: 10.0/10
PEG RatioValuation
0.3410/10

Growing faster than its price suggests

Return on EquityProfitability
59.7%10/10

Every $100 of equity generates 60 in profit

Revenue GrowthGrowth
66.9%10/10

Revenue surging 66.9% year-over-year

MRK2 strengths · Avg: 9.0/10
Market CapQuality
$355.10B10/10

Mega-cap, among the largest globally

Free Cash FlowQuality
$4.48B8/10

Generating 4.5B in free cash flow

Areas to Watch

ALNY4 concerns · Avg: 2.5/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

P/E RatioValuation
45.2x2/10

Premium valuation, high expectations priced in

Price/BookValuation
24.6x2/10

Trading at 24.6x book value

Altman Z-ScoreHealth
-0.022/10

Distress zone — elevated risk

MRK4 concerns · Avg: 3.3/10
Price/BookValuation
8.5x4/10

Trading at 8.5x book value

Return on EquityProfitability
7.6%3/10

ROE of 7.6% — below average capital efficiency

Profit MarginProfitability
4.8%3/10

4.8% margin — thin

Debt/EquityHealth
1.293/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : ALNY

The strongest argument for ALNY centers on PEG Ratio, Return on Equity, Revenue Growth. Profitability is solid with margins at 16.1% and operating margin at 17.9%. Revenue growth of 66.9% demonstrates continued momentum.

Bull Case : MRK

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

Bear Case : ALNY

The primary concerns for ALNY are EPS Growth, P/E Ratio, Price/Book. A P/E of 45.2x leaves little room for execution misses.

Bear Case : MRK

The primary concerns for MRK are Price/Book, Return on Equity, Profit Margin. A P/E of 116.1x leaves little room for execution misses. Thin 4.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

ALNY profiles as a growth stock while MRK is a value play — different risk/reward profiles.

ALNY carries more volatility with a beta of 0.30 — expect wider price swings.

ALNY is growing revenue faster at 66.9% — sustainability is the question.

MRK generates stronger free cash flow (4.5B), providing more financial flexibility.

Bottom Line

ALNY scores higher overall (68/100 vs 36/100), backed by strong 16.1% margins and 66.9% revenue growth. Both earn "Strong 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.

Alnylam Pharmaceuticals Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Alnylam Pharmaceuticals, Inc., a biopharmaceutical company, focuses on discovering, developing and commercializing RNA interference (RNAi) therapies. The company is headquartered in Cambridge, Massachusetts.

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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