Baxter International Inc (BAX)vsMerck & Company Inc (MRK)
BAX
Baxter International Inc
$17.53
-2.56%
HEALTHCARE · Cap: $9.05B
MRK
Merck & Company Inc
$111.28
-0.09%
HEALTHCARE · Cap: $277.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 481% more annual revenue ($65.77B vs $11.32B). MRK leads profitability with a 13.6% profit margin vs -9.7%. MRK appears more attractively valued with a PEG of 5.28. BAX earns a higher WallStSmart Score of 51/100 (C-).
BAX
Buy51
out of 100
Grade: C-
MRK
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+63.1%
Fair Value
$60.34
Current Price
$17.53
$42.81 discount
Margin of Safety
-13.8%
Fair Value
$97.84
Current Price
$111.28
$13.44 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 237.9% YoY
Mega-cap, among the largest globally
Strong operational efficiency at 38.6%
Generating 2.9B in free cash flow
Areas to Watch
2.9% revenue growth
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
Premium valuation, high expectations priced in
4.9% revenue growth
Weak financial health signals
Expensive relative to growth rate
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, Operating Margin, Free Cash Flow.
Bear Case : BAX
The primary concerns for BAX are Revenue Growth, Altman Z-Score, Debt/Equity. Debt-to-equity of 1.60 is elevated, increasing financial risk.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Piotroski F-Score.
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 0.62 — expect wider price swings.
MRK is growing revenue faster at 4.9% — sustainability is the question.
MRK generates stronger free cash flow (2.9B), providing more financial flexibility.
Bottom Line
BAX scores higher overall (51/100 vs 50/100). 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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