WallStSmart

Amgen Inc (AMGN)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 77% more annual revenue ($65.01B vs $36.75B). MRK leads profitability with a 28.1% profit margin vs 21.0%. AMGN appears more attractively valued with a PEG of 2.45. AMGN earns a higher WallStSmart Score of 70/100 (B-).

AMGN

Strong Buy

70

out of 100

Grade: B-

Growth: 8.0Profit: 8.5Value: 10.0Quality: 5.0
Piotroski: 4/9

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

AMGNUndervalued (+47.5%)

Margin of Safety

+47.5%

Fair Value

$666.90

Current Price

$351.48

$315.42 discount

UndervaluedFair: $666.90Overvalued
MRKSignificantly Overvalued (-130.7%)

Margin of Safety

-130.7%

Fair Value

$49.50

Current Price

$114.50

$65.00 premium

UndervaluedFair: $49.50Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AMGN5 strengths · Avg: 9.6/10
Return on EquityProfitability
106.1%10/10

Every $100 of equity generates 106 in profit

Operating MarginProfitability
30.5%10/10

Strong operational efficiency at 30.5%

EPS GrowthGrowth
112.1%10/10

Earnings expanding 112.1% YoY

Market CapQuality
$197.43B9/10

Large-cap with strong market position

Profit MarginProfitability
21.0%9/10

Keeps 21 of every $100 in revenue as profit

MRK6 strengths · Avg: 9.2/10
Market CapQuality
$285.39B10/10

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
15.9x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.82B8/10

Generating 1.8B in free cash flow

Areas to Watch

AMGN3 concerns · Avg: 3.3/10
PEG RatioValuation
2.454/10

Expensive relative to growth rate

P/E RatioValuation
25.7x4/10

Moderate valuation

Price/BookValuation
21.9x2/10

Trading at 21.9x book value

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

Weak financial health signals

PEG RatioValuation
3.522/10

Expensive relative to growth rate

EPS GrowthGrowth
-19.3%2/10

Earnings declined 19.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : AMGN

The strongest argument for AMGN centers on Return on Equity, Operating Margin, EPS Growth. Profitability is solid with margins at 21.0% and operating margin at 30.5%.

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 : AMGN

The primary concerns for AMGN are PEG Ratio, P/E Ratio, Price/Book.

Bear Case : MRK

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

Key Dynamics to Monitor

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

AMGN carries more volatility with a beta of 0.42 — expect wider price swings.

AMGN is growing revenue faster at 8.6% — sustainability is the question.

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

Bottom Line

AMGN scores higher overall (70/100 vs 59/100), backed by strong 21.0% margins. Both earn "Strong 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.

Amgen Inc

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Amgen Inc. (formerly Applied Molecular Genetics Inc.) is an American multinational biopharmaceutical company headquartered in Thousand Oaks, California. Focused on molecular biology and biochemistry, its goal is to provide a healthcare business based on recombinant DNA technology.

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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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