WallStSmart

Bristol-Myers Squibb Company (BMY)vsMerck & Company Inc (MRK)

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Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 36% more annual revenue ($65.77B vs $48.48B). BMY leads profitability with a 15.0% profit margin vs 13.6%. MRK appears more attractively valued with a PEG of 3.43. BMY earns a higher WallStSmart Score of 58/100 (C).

BMY

Buy

58

out of 100

Grade: C

Growth: 4.7Profit: 9.0Value: 6.7Quality: 4.5
Piotroski: 6/9Altman Z: 1.42

MRK

Buy

53

out of 100

Grade: C-

Growth: 3.3Profit: 8.5Value: 2.7Quality: 4.8
Piotroski: 2/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BMYUndervalued (+32.0%)

Margin of Safety

+32.0%

Fair Value

$88.10

Current Price

$57.38

$30.72 discount

UndervaluedFair: $88.10Overvalued
MRKSignificantly Overvalued (-15.7%)

Margin of Safety

-15.7%

Fair Value

$97.76

Current Price

$113.11

$15.35 premium

UndervaluedFair: $97.76Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BMY4 strengths · Avg: 8.8/10
Return on EquityProfitability
38.7%10/10

Every $100 of equity generates 39 in profit

Market CapQuality
$118.87B9/10

Large-cap with strong market position

P/E RatioValuation
16.3x8/10

Attractively priced relative to earnings

Operating MarginProfitability
29.3%8/10

Strong operational efficiency at 29.3%

MRK4 strengths · Avg: 9.5/10
Market CapQuality
$277.02B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
36.9%10/10

Every $100 of equity generates 37 in profit

Operating MarginProfitability
38.1%10/10

Strong operational efficiency at 38.1%

Free Cash FlowQuality
$2.93B8/10

Generating 2.9B in free cash flow

Areas to Watch

BMY4 concerns · Avg: 2.3/10
Revenue GrowthGrowth
2.6%4/10

2.6% revenue growth

PEG RatioValuation
23.182/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.422/10

Distress zone — elevated risk

Debt/EquityHealth
2.551/10

Elevated debt levels

MRK4 concerns · Avg: 3.3/10
P/E RatioValuation
31.5x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
3.432/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : BMY

The strongest argument for BMY centers on Return on Equity, Market Cap, P/E Ratio.

Bull Case : MRK

The strongest argument for MRK centers on Market Cap, Return on Equity, Operating Margin.

Bear Case : BMY

The primary concerns for BMY are Revenue Growth, PEG Ratio, Altman Z-Score. Debt-to-equity of 2.55 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

MRK carries more volatility with a beta of 0.28 — 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.

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

Bottom Line

BMY scores higher overall (58/100 vs 53/100). 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.

Bristol-Myers Squibb Company

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Bristol Myers Squibb (BMS) is an American multinational pharmaceutical company, headquartered in New York City. Bristol Myers Squibb manufactures prescription pharmaceuticals and biologics in several therapeutic areas, including cancer, AIDS, cardiovascular disease, diabetes, hepatitis, rheumatoid arthritis and psychiatric disorders.

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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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