Establishment Labs Holdings Inc (ESTA)vsMerck & Company Inc (MRK)
ESTA
Establishment Labs Holdings Inc
$68.97
+3.02%
HEALTHCARE · Cap: $1.76B
MRK
Merck & Company Inc
$141.16
-0.63%
HEALTHCARE · Cap: $360.08B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 26981% more annual revenue ($66.57B vs $245.82M). MRK leads profitability with a 4.8% profit margin vs -15.8%. MRK earns a higher WallStSmart Score of 36/100 (F).
ESTA
Avoid31
out of 100
Grade: F
MRK
Hold36
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-12.6%
Fair Value
$64.57
Current Price
$68.97
$4.40 premium
Margin of Safety
-73.7%
Fair Value
$83.64
Current Price
$141.16
$57.52 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 31.7% year-over-year
Mega-cap, among the largest globally
Generating 4.5B in free cash flow
Areas to Watch
0.0% earnings growth
Smaller company, higher risk/reward
Trading at 94.5x book value
ROE of -295.9% — below average capital efficiency
Trading at 8.3x book value
ROE of 7.6% — below average capital efficiency
4.8% margin — thin
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : ESTA
The strongest argument for ESTA centers on Revenue Growth. Revenue growth of 31.7% demonstrates continued momentum.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Free Cash Flow.
Bear Case : ESTA
The primary concerns for ESTA are EPS Growth, Market Cap, Price/Book. Debt-to-equity of 12.20 is elevated, increasing financial risk.
Bear Case : MRK
The primary concerns for MRK are Price/Book, Return on Equity, Profit Margin. A P/E of 115.8x leaves little room for execution misses. Thin 4.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
ESTA profiles as a hypergrowth stock while MRK is a value play — different risk/reward profiles.
ESTA carries more volatility with a beta of 1.06 — expect wider price swings.
ESTA is growing revenue faster at 31.7% — 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 31/100). 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.
Establishment Labs Holdings Inc
HEALTHCARE · MEDICAL DEVICES · USA
Establishment Labs Holdings Inc., a medical technology company, manufactures and markets medical devices for cosmetic and reconstructive plastic surgery. The company is headquartered in Alajuela, Costa Rica.
Visit Website →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.
Visit Website →Compare with Other MEDICAL DEVICES Stocks
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