WallStSmart

EDAP TMS SA (EDAP)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 89771% more annual revenue ($66.57B vs $74.07M). MRK leads profitability with a 4.8% profit margin vs -41.7%. MRK appears more attractively valued with a PEG of 2.64. MRK earns a higher WallStSmart Score of 36/100 (F).

EDAP

Avoid

25

out of 100

Grade: F

Growth: 4.7Profit: 2.0Value: 5.7Quality: 5.0

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

EDAPUndervalued (+41.7%)

Margin of Safety

+41.7%

Fair Value

$8.41

Current Price

$4.31

$4.10 discount

UndervaluedFair: $8.41Overvalued
MRKSignificantly Overvalued (-73.7%)

Margin of Safety

-73.7%

Fair Value

$82.84

Current Price

$144.85

$62.01 premium

UndervaluedFair: $82.84Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EDAP0 strengths · Avg: 0/10

No standout strengths identified

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

EDAP4 concerns · Avg: 2.8/10
Price/BookValuation
8.3x4/10

Trading at 8.3x book value

Market CapQuality
$156.30M3/10

Smaller company, higher risk/reward

PEG RatioValuation
90.472/10

Expensive relative to growth rate

Return on EquityProfitability
-124.0%2/10

ROE of -124.0% — below average capital efficiency

MRK4 concerns · Avg: 3.3/10
Price/BookValuation
8.5x4/10

Trading at 8.5x 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 : EDAP

Revenue growth of 13.9% demonstrates continued momentum.

Bull Case : MRK

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

Bear Case : EDAP

The primary concerns for EDAP are Price/Book, Market Cap, PEG Ratio.

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

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

MRK carries more volatility with a beta of 0.23 — expect wider price swings.

EDAP is growing revenue faster at 13.9% — sustainability is the question.

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

Bottom Line

MRK scores higher overall (36/100 vs 25/100). EDAP offers better value entry with a 41.7% margin of safety. Both earn "Hold" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

EDAP TMS SA

HEALTHCARE · MEDICAL DISTRIBUTION · USA

EDAP TMS SA, develops, produces, markets, distributes and maintains a portfolio of minimally invasive medical devices for the treatment of urological diseases in Asia, France, the United States and internationally. The company is headquartered in Lyon, France.

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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