Amgen Inc (AMGN)vsMerck & Company Inc (MRK)
AMGN
Amgen Inc
$377.35
-1.34%
HEALTHCARE · Cap: $204.01B
MRK
Merck & Company Inc
$143.93
-0.54%
HEALTHCARE · Cap: $355.10B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 75% more annual revenue ($66.57B vs $38.09B). AMGN leads profitability with a 23.0% profit margin vs 4.8%. AMGN appears more attractively valued with a PEG of 2.30. AMGN earns a higher WallStSmart Score of 71/100 (B).
AMGN
Strong Buy71
out of 100
Grade: B
MRK
Hold36
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-32.2%
Fair Value
$285.44
Current Price
$377.35
$91.91 premium
Margin of Safety
-73.7%
Fair Value
$82.84
Current Price
$143.93
$61.09 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 75 in profit
Strong operational efficiency at 35.5%
Earnings expanding 64.9% YoY
Keeps 23 of every $100 in revenue as profit
Generating 3.5B in free cash flow
Mega-cap, among the largest globally
Generating 4.5B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 17.5x book value
Distress zone — elevated risk
Elevated debt levels
Trading at 8.5x book value
ROE of 7.6% — below average capital efficiency
4.8% margin — thin
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : AMGN
The strongest argument for AMGN centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 23.0% and operating margin at 35.5%.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Free Cash Flow.
Bear Case : AMGN
The primary concerns for AMGN are PEG Ratio, Price/Book, Altman Z-Score. Debt-to-equity of 4.90 is elevated, increasing financial risk.
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
AMGN profiles as a mature stock while MRK is a value play — different risk/reward profiles.
AMGN carries more volatility with a beta of 0.43 — expect wider price swings.
AMGN is growing revenue faster at 9.5% — sustainability is the question.
MRK generates stronger free cash flow (4.5B), providing more financial flexibility.
Bottom Line
AMGN scores higher overall (71/100 vs 36/100), backed by strong 23.0% margins. 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.
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.
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 DRUG MANUFACTURERS - GENERAL Stocks
Want to dig deeper into these stocks?