Elanco Animal Health (ELAN)vsMerck & Company Inc (MRK)
ELAN
Elanco Animal Health
$23.63
-4.37%
HEALTHCARE · Cap: $12.07B
MRK
Merck & Company Inc
$120.79
-1.42%
HEALTHCARE · Cap: $285.64B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 1244% more annual revenue ($65.77B vs $4.89B). MRK leads profitability with a 13.6% profit margin vs -5.0%. ELAN appears more attractively valued with a PEG of 4.04. MRK earns a higher WallStSmart Score of 50/100 (D+).
ELAN
Hold44
out of 100
Grade: D
MRK
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-32.0%
Fair Value
$19.48
Current Price
$23.63
$4.15 premium
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
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
Expensive relative to growth rate
ROE of -3.7% — below average capital efficiency
Earnings declined 15.4%
Negative free cash flow — burning cash
Premium valuation, high expectations priced in
4.9% revenue growth
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : ELAN
The strongest argument for ELAN centers on Price/Book. Revenue growth of 14.9% demonstrates continued momentum.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bear Case : ELAN
The primary concerns for ELAN are PEG Ratio, Return on Equity, EPS Growth.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Debt/Equity.
Key Dynamics to Monitor
ELAN profiles as a turnaround stock while MRK is a value play — different risk/reward profiles.
ELAN carries more volatility with a beta of 1.70 — expect wider price swings.
ELAN is growing revenue faster at 14.9% — 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 44/100). 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.
Elanco Animal Health
HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA
Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures and markets products for pets and farm animals. The company is headquartered in Greenfield, Indiana.
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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