WallStSmart

AstraZeneca PLC (AZN)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 11% more annual revenue ($65.01B vs $58.74B). MRK leads profitability with a 28.1% profit margin vs 17.4%. AZN appears more attractively valued with a PEG of 1.56. AZN earns a higher WallStSmart Score of 64/100 (C+).

AZN

Buy

64

out of 100

Grade: C+

Growth: 6.7Profit: 8.0Value: 10.0Quality: 6.0
Piotroski: 6/9Altman Z: 1.48

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

AZNUndervalued (+32.8%)

Margin of Safety

+32.8%

Fair Value

$306.07

Current Price

$188.93

$117.14 discount

UndervaluedFair: $306.07Overvalued
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

AZN5 strengths · Avg: 9.0/10
Market CapQuality
$296.55B10/10

Mega-cap, among the largest globally

EPS GrowthGrowth
53.9%10/10

Earnings expanding 53.9% YoY

Return on EquityProfitability
22.8%9/10

Every $100 of equity generates 23 in profit

Operating MarginProfitability
21.6%8/10

Strong operational efficiency at 21.6%

Free Cash FlowQuality
$1.38B8/10

Generating 1.4B in free cash flow

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

AZN4 concerns · Avg: 3.5/10
PEG RatioValuation
1.564/10

Expensive relative to growth rate

P/E RatioValuation
29.3x4/10

Moderate valuation

Revenue GrowthGrowth
4.1%4/10

4.1% revenue growth

Altman Z-ScoreHealth
1.482/10

Distress zone — elevated risk

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 : AZN

The strongest argument for AZN centers on Market Cap, EPS Growth, Return on Equity. Profitability is solid with margins at 17.4% and operating margin at 21.6%.

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 : AZN

The primary concerns for AZN are PEG Ratio, P/E Ratio, Revenue Growth.

Bear Case : MRK

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

Key Dynamics to Monitor

MRK carries more volatility with a beta of 0.26 — expect wider price swings.

MRK is growing revenue faster at 5.0% — sustainability is the question.

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

Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

AZN scores higher overall (64/100 vs 59/100), backed by strong 17.4% margins. Both earn "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.

AstraZeneca PLC

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

AstraZeneca PLC discovers, develops, manufactures and markets prescription drugs in the areas of oncology, cardiovascular, renal and metabolism, respiratory, infections, neuroscience and gastroenterology worldwide. The company is headquartered in Cambridge, the United Kingdom.

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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