EDAP TMS SA (EDAP)vsMerck & Company Inc (MRK)
EDAP
EDAP TMS SA
$4.31
+0.23%
HEALTHCARE · Cap: $156.30M
MRK
Merck & Company Inc
$120.79
-3.46%
HEALTHCARE · Cap: $285.64B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 88689% more annual revenue ($65.77B vs $74.07M). MRK leads profitability with a 13.6% profit margin vs -41.7%. MRK appears more attractively valued with a PEG of 5.36. MRK earns a higher WallStSmart Score of 50/100 (D+).
EDAP
Avoid25
out of 100
Grade: F
MRK
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+41.7%
Fair Value
$8.41
Current Price
$4.31
$4.10 discount
Margin of Safety
-49.3%
Fair Value
$80.88
Current Price
$120.79
$39.91 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
No standout strengths identified
Mega-cap, among the largest globally
Strong operational efficiency at 38.6%
Generating 2.9B in free cash flow
Areas to Watch
Trading at 8.3x book value
Smaller company, higher risk/reward
Expensive relative to growth rate
ROE of -124.0% — below average capital efficiency
Premium valuation, high expectations priced in
4.9% revenue growth
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : EDAP
Revenue growth of 13.9% demonstrates continued momentum.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, 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 P/E Ratio, Revenue Growth, Debt/Equity.
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 0.20 — expect wider price swings.
EDAP is growing revenue faster at 13.9% — sustainability is the question.
MRK generates stronger free cash flow (2.9B), providing more financial flexibility.
Bottom Line
MRK scores higher overall (50/100 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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