WallStSmart

AtriCure Inc (ATRC)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 11811% more annual revenue ($65.77B vs $552.16M). MRK leads profitability with a 13.6% profit margin vs -0.8%. MRK appears more attractively valued with a PEG of 5.36. MRK earns a higher WallStSmart Score of 50/100 (D+).

ATRC

Hold

37

out of 100

Grade: F

Growth: 6.0Profit: 2.5Value: 5.7Quality: 8.5
Piotroski: 5/9Altman Z: 2.17

MRK

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 8.0Value: 2.7Quality: 5.0
Piotroski: 3/9Altman Z: 2.30
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ATRCUndervalued (+55.5%)

Margin of Safety

+55.5%

Fair Value

$73.91

Current Price

$27.10

$46.81 discount

UndervaluedFair: $73.91Overvalued
MRKSignificantly Overvalued (-49.3%)

Margin of Safety

-49.3%

Fair Value

$80.88

Current Price

$120.79

$39.91 premium

UndervaluedFair: $80.88Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ATRC2 strengths · Avg: 8.5/10
Debt/EquityHealth
0.159/10

Conservative balance sheet, low leverage

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

MRK3 strengths · Avg: 9.3/10
Market CapQuality
$285.64B10/10

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

ATRC4 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$1.46B3/10

Smaller company, higher risk/reward

Operating MarginProfitability
0.4%3/10

Operating margin of 0.4%

PEG RatioValuation
10.002/10

Expensive relative to growth rate

MRK4 concerns · Avg: 3.5/10
P/E RatioValuation
32.6x4/10

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 : ATRC

The strongest argument for ATRC centers on Debt/Equity, Price/Book. Revenue growth of 14.3% demonstrates continued momentum.

Bull Case : MRK

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

Bear Case : ATRC

The primary concerns for ATRC are EPS Growth, Market Cap, Operating Margin.

Bear Case : MRK

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

Key Dynamics to Monitor

ATRC profiles as a turnaround stock while MRK is a value play — different risk/reward profiles.

ATRC carries more volatility with a beta of 1.26 — expect wider price swings.

ATRC is growing revenue faster at 14.3% — sustainability is the question.

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

Bottom Line

MRK scores higher overall (50/100 vs 37/100). ATRC offers better value entry with a 55.5% margin of safety. Both earn "Hold" 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.

AtriCure Inc

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

AtriCure, Inc. develops, manufactures, and sells devices for the surgical ablation of cardiac tissue and systems to medical centers in the United States, Europe, Asia, and internationally. The company is headquartered in Mason, Ohio.

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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