Gilead Sciences Inc (GILD)vsMerck & Company Inc (MRK)
GILD
Gilead Sciences Inc
$137.21
-2.76%
HEALTHCARE · Cap: $170.34B
MRK
Merck & Company Inc
$114.18
-0.02%
HEALTHCARE · Cap: $282.30B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 121% more annual revenue ($65.01B vs $29.44B). GILD leads profitability with a 28.9% profit margin vs 28.1%. GILD appears more attractively valued with a PEG of 0.38. GILD earns a higher WallStSmart Score of 72/100 (B).
GILD
Strong Buy72
out of 100
Grade: B
MRK
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+54.3%
Fair Value
$299.95
Current Price
$137.21
$162.74 discount
Margin of Safety
-130.9%
Fair Value
$49.44
Current Price
$114.18
$64.74 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Every $100 of equity generates 41 in profit
Strong operational efficiency at 37.4%
Large-cap with strong market position
Keeps 29 of every $100 in revenue as profit
Earnings expanding 23.4% YoY
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
4.7% revenue growth
Weak financial health signals
Expensive relative to growth rate
Earnings declined 19.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : GILD
The strongest argument for GILD centers on PEG Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 28.9% and operating margin at 37.4%. PEG of 0.38 suggests the stock is reasonably priced for its growth.
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 : GILD
The primary concerns for GILD are Revenue Growth.
Bear Case : MRK
The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
GILD carries more volatility with a beta of 0.37 — expect wider price swings.
MRK is growing revenue faster at 5.0% — sustainability is the question.
GILD generates stronger free cash flow (3.1B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
GILD scores higher overall (72/100 vs 59/100), backed by strong 28.9% margins. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Gilead Sciences Inc
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Gilead Sciences, Inc. is an American biopharmaceutical company headquartered in Foster City, California, that focuses on researching and developing antiviral drugs used in the treatment of HIV, hepatitis B, hepatitis C, and influenza, including Harvoni and Sovaldi.
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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