Gilead Sciences Inc (GILD)vsMerck & Company Inc (MRK)
GILD
Gilead Sciences Inc
$129.16
-1.35%
HEALTHCARE · Cap: $154.33B
MRK
Merck & Company Inc
$120.79
-1.36%
HEALTHCARE · Cap: $283.78B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 121% more annual revenue ($65.77B vs $29.74B). GILD leads profitability with a 31.0% profit margin vs 13.6%. GILD appears more attractively valued with a PEG of 2.14. GILD earns a higher WallStSmart Score of 68/100 (B-).
GILD
Strong Buy68
out of 100
Grade: B-
MRK
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+42.5%
Fair Value
$221.22
Current Price
$129.16
$92.06 discount
Margin of Safety
-42.4%
Fair Value
$80.88
Current Price
$120.79
$39.91 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 39 in profit
Keeps 31 of every $100 in revenue as profit
Strong operational efficiency at 39.3%
Earnings expanding 54.8% YoY
Large-cap with strong market position
Attractively priced relative to earnings
Mega-cap, among the largest globally
Strong operational efficiency at 38.6%
Generating 2.9B in free cash flow
Areas to Watch
Expensive relative to growth rate
4.4% revenue growth
Grey zone — moderate risk
Premium valuation, high expectations priced in
4.9% revenue growth
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : GILD
The strongest argument for GILD centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 31.0% and operating margin at 39.3%.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bear Case : GILD
The primary concerns for GILD are PEG Ratio, Revenue Growth, Altman Z-Score.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Debt/Equity.
Key Dynamics to Monitor
GILD carries more volatility with a beta of 0.33 — expect wider price swings.
MRK is growing revenue faster at 4.9% — sustainability is the question.
MRK generates stronger free cash flow (2.9B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
GILD scores higher overall (68/100 vs 50/100), backed by strong 31.0% margins. Both earn "Strong 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.
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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