Amgen Inc (AMGN)vsMerck & Company Inc (MRK)
AMGN
Amgen Inc
$349.58
-1.19%
HEALTHCARE · Cap: $189.18B
MRK
Merck & Company Inc
$120.79
-1.36%
HEALTHCARE · Cap: $283.78B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 77% more annual revenue ($65.77B vs $37.22B). AMGN leads profitability with a 21.0% profit margin vs 13.6%. AMGN appears more attractively valued with a PEG of 2.32. AMGN earns a higher WallStSmart Score of 62/100 (C+).
AMGN
Buy62
out of 100
Grade: C+
MRK
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-25.2%
Fair Value
$277.75
Current Price
$349.58
$71.83 premium
Margin of Safety
-42.4%
Fair Value
$80.88
Current Price
$120.79
$39.91 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 85 in profit
Strong operational efficiency at 33.8%
Large-cap with strong market position
Keeps 21 of every $100 in revenue as profit
Generating 1.5B in free cash flow
Mega-cap, among the largest globally
Strong operational efficiency at 38.6%
Generating 2.9B in free cash flow
Areas to Watch
Expensive relative to growth rate
4.4% earnings growth
Trading at 20.5x book value
Distress zone — elevated risk
Premium valuation, high expectations priced in
4.9% revenue growth
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : AMGN
The strongest argument for AMGN centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 21.0% and operating margin at 33.8%.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bear Case : AMGN
The primary concerns for AMGN are PEG Ratio, EPS Growth, Price/Book. Debt-to-equity of 6.24 is elevated, increasing financial risk.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Debt/Equity.
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 5.8% — sustainability is the question.
MRK generates stronger free cash flow (2.9B), providing more financial flexibility.
Bottom Line
AMGN scores higher overall (62/100 vs 50/100), backed by strong 21.0% margins. 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.
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
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