WallStSmart

Charles River Laboratories (CRL)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 1565% more annual revenue ($66.57B vs $4.00B). MRK leads profitability with a 4.8% profit margin vs -6.0%. CRL appears more attractively valued with a PEG of 0.12. CRL earns a higher WallStSmart Score of 43/100 (D).

CRL

Hold

43

out of 100

Grade: D

Growth: 2.7Profit: 4.5Value: 6.3Quality: 4.5
Piotroski: 4/9Altman Z: 1.38

MRK

Hold

36

out of 100

Grade: F

Growth: 4.0Profit: 4.5Value: 2.0Quality: 5.0
Piotroski: 3/9Altman Z: 2.27
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CRLFair Value (-2.1%)

Margin of Safety

-2.1%

Fair Value

$162.50

Current Price

$277.33

$114.83 premium

UndervaluedFair: $162.50Overvalued
MRKSignificantly Overvalued (-77.2%)

Margin of Safety

-77.2%

Fair Value

$83.04

Current Price

$148.10

$65.06 premium

UndervaluedFair: $83.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CRL1 strengths · Avg: 10.0/10
PEG RatioValuation
0.1210/10

Growing faster than its price suggests

MRK2 strengths · Avg: 9.0/10
Market CapQuality
$355.10B10/10

Mega-cap, among the largest globally

Free Cash FlowQuality
$4.48B8/10

Generating 4.5B in free cash flow

Areas to Watch

CRL4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.073/10

Elevated debt levels

Return on EquityProfitability
-8.4%2/10

ROE of -8.4% — below average capital efficiency

Revenue GrowthGrowth
-2.7%2/10

Revenue declined 2.7%

EPS GrowthGrowth
-17.3%2/10

Earnings declined 17.3%

MRK4 concerns · Avg: 3.3/10
Price/BookValuation
8.7x4/10

Trading at 8.7x book value

Return on EquityProfitability
7.6%3/10

ROE of 7.6% — below average capital efficiency

Profit MarginProfitability
4.8%3/10

4.8% margin — thin

Debt/EquityHealth
1.293/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : CRL

The strongest argument for CRL centers on PEG Ratio. PEG of 0.12 suggests the stock is reasonably priced for its growth.

Bull Case : MRK

The strongest argument for MRK centers on Market Cap, Free Cash Flow.

Bear Case : CRL

The primary concerns for CRL are Debt/Equity, Return on Equity, Revenue Growth.

Bear Case : MRK

The primary concerns for MRK are Price/Book, Return on Equity, Profit Margin. A P/E of 116.1x leaves little room for execution misses. Thin 4.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

CRL profiles as a turnaround stock while MRK is a value play — different risk/reward profiles.

CRL carries more volatility with a beta of 1.41 — expect wider price swings.

MRK is growing revenue faster at 5.1% — sustainability is the question.

MRK generates stronger free cash flow (4.5B), providing more financial flexibility.

Bottom Line

CRL scores higher overall (43/100 vs 36/100). Both earn "Hold" 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.

Charles River Laboratories

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

Charles River Laboratories International, Inc., is an American pharmaceutical company specializing in a variety of preclinical and clinical laboratory, gene therapy and cell therapy services for the Pharmaceutical, Medical device and Biotechnology industries. It also supplies assorted biomedical products and outsourcing services for research and development in the pharmaceutical industry and offer support in the fields of basic research, drug discovery, safety and efficacy, clinical support, and manufacturing.

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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