Elanco Animal Health (ELAN)vsMerck & Company Inc (MRK)
ELAN
Elanco Animal Health
$23.17
+1.36%
HEALTHCARE · Cap: $11.98B
MRK
Merck & Company Inc
$143.93
-0.54%
HEALTHCARE · Cap: $355.10B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 1226% more annual revenue ($66.57B vs $5.02B). MRK leads profitability with a 4.8% profit margin vs -4.0%. MRK appears more attractively valued with a PEG of 2.64. ELAN earns a higher WallStSmart Score of 52/100 (C-).
ELAN
Buy52
out of 100
Grade: C-
MRK
Hold36
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-29.5%
Fair Value
$19.85
Current Price
$23.17
$3.32 premium
Margin of Safety
-73.7%
Fair Value
$82.84
Current Price
$143.93
$61.09 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 440.5% YoY
Reasonable price relative to book value
Mega-cap, among the largest globally
Generating 4.5B in free cash flow
Areas to Watch
Expensive relative to growth rate
ROE of -3.0% — below average capital efficiency
Distress zone — elevated risk
Currently unprofitable
Trading at 8.5x book value
ROE of 7.6% — below average capital efficiency
4.8% margin — thin
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : ELAN
The strongest argument for ELAN centers on EPS Growth, Price/Book. Revenue growth of 10.2% demonstrates continued momentum.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Free Cash Flow.
Bear Case : ELAN
The primary concerns for ELAN are PEG Ratio, Return on Equity, Altman Z-Score.
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
ELAN profiles as a turnaround stock while MRK is a value play — different risk/reward profiles.
ELAN carries more volatility with a beta of 1.68 — expect wider price swings.
ELAN is growing revenue faster at 10.2% — sustainability is the question.
MRK generates stronger free cash flow (4.5B), providing more financial flexibility.
Bottom Line
ELAN scores higher overall (52/100 vs 36/100) and 10.2% revenue growth. Both earn "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.
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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