WallStSmart

Globus Medical (GMED)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 2112% more annual revenue ($65.01B vs $2.94B). MRK leads profitability with a 28.1% profit margin vs 18.3%. GMED appears more attractively valued with a PEG of 1.73. GMED earns a higher WallStSmart Score of 72/100 (B).

GMED

Strong Buy

72

out of 100

Grade: B

Growth: 9.3Profit: 7.0Value: 6.7Quality: 7.8
Piotroski: 4/9Altman Z: 3.88

MRK

Buy

59

out of 100

Grade: C

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GMEDUndervalued (+40.9%)

Margin of Safety

+40.9%

Fair Value

$149.32

Current Price

$90.18

$59.14 discount

UndervaluedFair: $149.32Overvalued
MRKSignificantly Overvalued (-16.2%)

Margin of Safety

-16.2%

Fair Value

$96.56

Current Price

$109.18

$12.62 premium

UndervaluedFair: $96.56Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GMED5 strengths · Avg: 8.8/10
EPS GrowthGrowth
437.0%10/10

Earnings expanding 437.0% YoY

Altman Z-ScoreHealth
3.8810/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

Operating MarginProfitability
24.4%8/10

Strong operational efficiency at 24.4%

Revenue GrowthGrowth
25.7%8/10

Revenue surging 25.7% year-over-year

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

GMED1 concerns · Avg: 4.0/10
PEG RatioValuation
1.734/10

Expensive relative to growth rate

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 : GMED

The strongest argument for GMED centers on EPS Growth, Altman Z-Score, Price/Book. Profitability is solid with margins at 18.3% and operating margin at 24.4%. Revenue growth of 25.7% demonstrates continued momentum.

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 : GMED

The primary concerns for GMED are PEG Ratio.

Bear Case : MRK

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

Key Dynamics to Monitor

GMED profiles as a growth stock while MRK is a value play — different risk/reward profiles.

GMED carries more volatility with a beta of 1.09 — expect wider price swings.

GMED is growing revenue faster at 25.7% — sustainability is the question.

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

Bottom Line

GMED scores higher overall (72/100 vs 59/100), backed by strong 18.3% margins and 25.7% revenue growth. 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.

Globus Medical

HEALTHCARE · MEDICAL DEVICES · USA

Globus Medical, Inc., a medical device company, develops and markets healthcare solutions for patients with musculoskeletal disorders. The company is headquartered in Audubon, Pennsylvania.

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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