GlaxoSmithKline PLC ADR (GSK)vsMerck & Company Inc (MRK)
GSK
GlaxoSmithKline PLC ADR
$49.72
+1.47%
HEALTHCARE · Cap: $104.69B
MRK
Merck & Company Inc
$120.79
-1.36%
HEALTHCARE · Cap: $283.78B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 101% more annual revenue ($65.77B vs $32.78B). GSK leads profitability with a 17.8% profit margin vs 13.6%. MRK appears more attractively valued with a PEG of 5.34. GSK earns a higher WallStSmart Score of 58/100 (C).
GSK
Buy58
out of 100
Grade: C
MRK
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-26.5%
Fair Value
$46.24
Current Price
$49.72
$3.48 premium
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
Strong operational efficiency at 36.3%
Large-cap with strong market position
Every $100 of equity generates 25 in profit
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
1.5% revenue growth
Elevated debt levels
Expensive relative to growth rate
Distress zone — elevated risk
Premium valuation, high expectations priced in
4.9% revenue growth
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : GSK
The strongest argument for GSK centers on Operating Margin, Market Cap, Return on Equity. Profitability is solid with margins at 17.8% and operating margin at 36.3%.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bear Case : GSK
The primary concerns for GSK are Revenue Growth, Debt/Equity, PEG Ratio.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Debt/Equity.
Key Dynamics to Monitor
GSK carries more volatility with a beta of 0.29 — 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
GSK scores higher overall (58/100 vs 50/100), backed by strong 17.8% margins. 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.
GlaxoSmithKline PLC ADR
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
GlaxoSmithKline plc is dedicated to the creation, discovery, development, manufacture and marketing of pharmaceuticals, vaccines, over-the-counter drugs and health-related consumer products in the UK, US and internationally. The company is headquartered in Brentford, the United Kingdom.
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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