Enanta Pharmaceuticals Inc (ENTA)vsMerck & Company Inc (MRK)
ENTA
Enanta Pharmaceuticals Inc
$13.87
+1.17%
HEALTHCARE · Cap: $386.25M
MRK
Merck & Company Inc
$109.18
-1.60%
HEALTHCARE · Cap: $274.03B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 96960% more annual revenue ($65.01B vs $66.98M). MRK leads profitability with a 28.1% profit margin vs -106.8%. MRK earns a higher WallStSmart Score of 59/100 (C).
ENTA
Avoid25
out of 100
Grade: F
MRK
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+43.9%
Fair Value
$25.41
Current Price
$13.87
$11.54 discount
Margin of Safety
-13.2%
Fair Value
$96.48
Current Price
$109.18
$12.70 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
No standout strengths identified
Mega-cap, among the largest globally
Every $100 of equity generates 37 in profit
Strong operational efficiency at 32.8%
Keeps 28 of every $100 in revenue as profit
Attractively priced relative to earnings
Generating 1.8B in free cash flow
Areas to Watch
Smaller company, higher risk/reward
ROE of -60.0% — below average capital efficiency
Earnings declined 66.2%
Negative free cash flow — burning cash
Weak financial health signals
Expensive relative to growth rate
Earnings declined 19.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : ENTA
ENTA has a balanced fundamental profile.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 28.1% and operating margin at 32.8%.
Bear Case : ENTA
The primary concerns for ENTA are Market Cap, Return on Equity, EPS Growth.
Bear Case : MRK
The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
ENTA profiles as a turnaround stock while MRK is a value play — different risk/reward profiles.
ENTA carries more volatility with a beta of 1.00 — expect wider price swings.
ENTA is growing revenue faster at 9.8% — sustainability is the question.
MRK generates stronger free cash flow (1.8B), providing more financial flexibility.
Bottom Line
MRK scores higher overall (59/100 vs 25/100), backed by strong 28.1% margins. ENTA offers better value entry with a 43.9% margin of safety. Both earn "Buy" 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.
Enanta Pharmaceuticals Inc
HEALTHCARE · BIOTECHNOLOGY · USA
Enanta Pharmaceuticals, Inc., a biotechnology company, discovers and develops small molecule drugs for the treatment of viral infections and liver diseases. The company is headquartered in Watertown, Massachusetts.
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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