WallStSmart

Fonar Corporation (FONR)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 61213% more annual revenue ($65.01B vs $106.03M). MRK leads profitability with a 28.1% profit margin vs 7.1%. MRK trades at a lower P/E of 15.2x. MRK earns a higher WallStSmart Score of 59/100 (C).

FONR

Hold

44

out of 100

Grade: D

Growth: 4.0Profit: 5.0Value: 7.0Quality: 5.0

MRK

Buy

59

out of 100

Grade: C

Growth: 4.0Profit: 9.5Value: 4.7Quality: 4.8
Piotroski: 3/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FONRUndervalued (+27.9%)

Margin of Safety

+27.9%

Fair Value

$25.76

Current Price

$18.93

$6.83 discount

UndervaluedFair: $25.76Overvalued
MRKOvervalued (-13.2%)

Margin of Safety

-13.2%

Fair Value

$96.48

Current Price

$109.18

$12.70 premium

UndervaluedFair: $96.48Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FONR2 strengths · Avg: 9.0/10
Price/BookValuation
0.7x10/10

Reasonable price relative to book value

P/E RatioValuation
16.4x8/10

Attractively priced relative to earnings

MRK6 strengths · Avg: 9.2/10
Market CapQuality
$274.03B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
36.9%10/10

Every $100 of equity generates 37 in profit

Operating MarginProfitability
32.8%10/10

Strong operational efficiency at 32.8%

Profit MarginProfitability
28.1%9/10

Keeps 28 of every $100 in revenue as profit

P/E RatioValuation
15.2x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.82B8/10

Generating 1.8B in free cash flow

Areas to Watch

FONR4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
2.4%4/10

2.4% revenue growth

EPS GrowthGrowth
1.1%4/10

1.1% earnings growth

Market CapQuality
$118.64M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.0%3/10

ROE of 6.0% — below average capital efficiency

MRK3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.362/10

Expensive relative to growth rate

EPS GrowthGrowth
-19.3%2/10

Earnings declined 19.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : FONR

The strongest argument for FONR centers on Price/Book, P/E Ratio.

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 : FONR

The primary concerns for FONR are Revenue Growth, EPS Growth, Market Cap.

Bear Case : MRK

The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.

Key Dynamics to Monitor

FONR carries more volatility with a beta of 0.99 — expect wider price swings.

MRK is growing revenue faster at 5.0% — sustainability is the question.

MRK generates stronger free cash flow (1.8B), providing more financial flexibility.

Monitor DIAGNOSTICS & RESEARCH industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MRK scores higher overall (59/100 vs 44/100), backed by strong 28.1% margins. FONR offers better value entry with a 27.9% margin of safety. 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.

Fonar Corporation

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

FONAR Corporation is engaged in the research, development, production, and marketing of Magnetic Resonance Imaging (MRI) scanners for the detection and diagnosis of human diseases in the United States. The company is headquartered in Melville, New York.

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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