WallStSmart

Bausch Health Companies Inc (BHC)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 533% more annual revenue ($65.01B vs $10.27B). MRK leads profitability with a 28.1% profit margin vs 1.5%. BHC appears more attractively valued with a PEG of 0.01. BHC earns a higher WallStSmart Score of 70/100 (B).

BHC

Strong Buy

70

out of 100

Grade: B

Growth: 7.3Profit: 7.5Value: 7.7Quality: 5.5
Piotroski: 4/9Altman Z: 0.21

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

Intrinsic value data unavailable for BHC.

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

BHC6 strengths · Avg: 9.3/10
PEG RatioValuation
0.0110/10

Growing faster than its price suggests

Return on EquityProfitability
43.6%10/10

Every $100 of equity generates 44 in profit

EPS GrowthGrowth
1368.0%10/10

Earnings expanding 1368.0% YoY

Debt/EquityHealth
-38.2810/10

Conservative balance sheet, low leverage

P/E RatioValuation
13.3x8/10

Attractively priced relative to earnings

Operating MarginProfitability
25.8%8/10

Strong operational efficiency at 25.8%

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

BHC2 concerns · Avg: 2.5/10
Profit MarginProfitability
1.5%3/10

1.5% margin — thin

Altman Z-ScoreHealth
0.212/10

Distress zone — elevated risk

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 : BHC

The strongest argument for BHC centers on PEG Ratio, Return on Equity, EPS Growth. PEG of 0.01 suggests the stock is reasonably priced for its growth.

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 : BHC

The primary concerns for BHC are Profit Margin, Altman Z-Score. Thin 1.5% margins leave little buffer for downturns.

Bear Case : MRK

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

Key Dynamics to Monitor

BHC carries more volatility with a beta of 0.40 — expect wider price swings.

BHC is growing revenue faster at 9.3% — sustainability is the question.

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

Monitor DRUG MANUFACTURERS - SPECIALTY & GENERIC industry trends, competitive dynamics, and regulatory changes.

Bottom Line

BHC scores higher overall (70/100 vs 59/100). Both earn "Strong 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.

Bausch Health Companies Inc

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Bausch Health Companies Inc. develops, manufactures and markets a range of pharmaceutical, medical device and over-the-counter (OTC) products primarily in the therapeutic areas of eye health, gastroenterology and dermatology. The company is headquartered in Laval, Canada.

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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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