Baxter International Inc (BAX)vsMerck & Company Inc (MRK)
BAX
Baxter International Inc
$23.37
-0.47%
HEALTHCARE · Cap: $11.85B
MRK
Merck & Company Inc
$148.81
+0.54%
HEALTHCARE · Cap: $365.34B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 480% more annual revenue ($66.57B vs $11.47B). MRK leads profitability with a 4.8% profit margin vs -9.3%. MRK appears more attractively valued with a PEG of 2.76. BAX earns a higher WallStSmart Score of 54/100 (C-).
BAX
Buy54
out of 100
Grade: C-
MRK
Hold36
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+51.0%
Fair Value
$45.43
Current Price
$23.37
$22.06 discount
Margin of Safety
-78.2%
Fair Value
$83.04
Current Price
$148.81
$65.77 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 36.8% YoY
Mega-cap, among the largest globally
Generating 4.5B in free cash flow
Areas to Watch
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
ROE of -17.1% — below average capital efficiency
Trading at 8.8x book value
ROE of 7.6% — below average capital efficiency
4.8% margin — thin
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : BAX
The strongest argument for BAX centers on Price/Book, EPS Growth.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Free Cash Flow.
Bear Case : BAX
The primary concerns for BAX are Altman Z-Score, Debt/Equity, PEG Ratio. Debt-to-equity of 1.56 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 120.4x leaves little room for execution misses. Thin 4.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
BAX profiles as a turnaround stock while MRK is a value play — different risk/reward profiles.
BAX carries more volatility with a beta of 0.59 — expect wider price swings.
BAX is growing revenue faster at 5.3% — sustainability is the question.
MRK generates stronger free cash flow (4.5B), providing more financial flexibility.
Bottom Line
BAX scores higher overall (54/100 vs 36/100). 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.
Baxter International Inc
HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA
Baxter International Inc. is an American multinational health care company with headquarters in Deerfield, Illinois. The company primarily focuses on products to treat hemophilia, kidney disease, immune disorders and other chronic and acute medical conditions.
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 MEDICAL INSTRUMENTS & SUPPLIES Stocks
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