Canadian Natural Resources Ltd (CNQ)vsMerck & Company Inc (MRK)
CNQ
Canadian Natural Resources Ltd
$44.53
-0.47%
ENERGY · Cap: $92.88B
MRK
Merck & Company Inc
$111.38
-0.82%
HEALTHCARE · Cap: $277.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 70% more annual revenue ($65.77B vs $38.76B). CNQ leads profitability with a 27.9% profit margin vs 13.6%. CNQ appears more attractively valued with a PEG of 3.42. CNQ earns a higher WallStSmart Score of 67/100 (B-).
CNQ
Strong Buy67
out of 100
Grade: B-
MRK
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+55.1%
Fair Value
$90.53
Current Price
$44.53
$46.00 discount
Margin of Safety
-14.9%
Fair Value
$97.76
Current Price
$111.38
$13.62 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Earnings expanding 371.8% YoY
Large-cap with strong market position
Every $100 of equity generates 26 in profit
Keeps 28 of every $100 in revenue as profit
Reasonable price relative to book value
Mega-cap, among the largest globally
Strong operational efficiency at 38.6%
Generating 2.9B in free cash flow
Areas to Watch
1.5% revenue growth
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 : CNQ
The strongest argument for CNQ centers on P/E Ratio, EPS Growth, Market Cap. Profitability is solid with margins at 27.9% and operating margin at 19.6%.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bear Case : CNQ
The primary concerns for CNQ are Revenue Growth, PEG Ratio.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Piotroski F-Score.
Key Dynamics to Monitor
CNQ carries more volatility with a beta of 0.91 — expect wider price swings.
MRK is growing revenue faster at 4.9% — sustainability is the question.
Monitor OIL & GAS E&P industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CNQ scores higher overall (67/100 vs 50/100), backed by strong 27.9% margins. Both earn "Strong 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.
Canadian Natural Resources Ltd
ENERGY · OIL & GAS E&P · USA
Canadian Natural Resources Limited acquires, explores, develops, produces, markets and sells crude oil, natural gas and natural gas liquids (NGL). The company is headquartered in Calgary, Canada.
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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