WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 12062% more annual revenue ($65.01B vs $534.53M). MRK leads profitability with a 28.1% profit margin vs -2.1%. MRK appears more attractively valued with a PEG of 3.36. MRK earns a higher WallStSmart Score of 59/100 (C).

ATRC

Hold

37

out of 100

Grade: F

Growth: 6.0Profit: 2.5Value: 5.7Quality: 7.3
Piotroski: 4/9Altman Z: 2.18

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

ATRCUndervalued (+58.5%)

Margin of Safety

+58.5%

Fair Value

$79.30

Current Price

$28.11

$51.19 discount

UndervaluedFair: $79.30Overvalued
MRKOvervalued (-13.2%)

Margin of Safety

-13.2%

Fair Value

$96.48

Current Price

$109.18

$12.70 premium

UndervaluedFair: $96.48Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ATRC1 strengths · Avg: 8.0/10
Price/BookValuation
2.8x8/10

Reasonable price relative to book value

MRK6 strengths · Avg: 9.2/10
Market CapQuality
$274.03B10/10

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
15.2x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.82B8/10

Generating 1.8B 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
$1.38B3/10

Smaller company, higher risk/reward

Operating MarginProfitability
1.8%3/10

Operating margin of 1.8%

PEG RatioValuation
10.002/10

Expensive relative to growth rate

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

Weak financial health signals

PEG RatioValuation
3.362/10

Expensive relative to growth rate

EPS GrowthGrowth
-19.3%2/10

Earnings declined 19.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : ATRC

The strongest argument for ATRC centers on Price/Book. Revenue growth of 13.1% demonstrates continued momentum.

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 : ATRC

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

Bear Case : MRK

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

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 1.43 — expect wider price swings.

ATRC is growing revenue faster at 13.1% — sustainability is the question.

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

Bottom Line

MRK scores higher overall (59/100 vs 37/100), backed by strong 28.1% margins. ATRC offers better value entry with a 58.5% margin of safety. 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.

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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