HUTCHMED DRC (HCM)vsMerck & Company Inc (MRK)
HCM
HUTCHMED DRC
$13.36
-1.69%
HEALTHCARE · Cap: $2.30B
MRK
Merck & Company Inc
$109.18
-1.60%
HEALTHCARE · Cap: $274.03B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 11752% more annual revenue ($65.01B vs $548.51M). HCM leads profitability with a 83.3% profit margin vs 28.1%. HCM trades at a lower P/E of 5.0x. MRK earns a higher WallStSmart Score of 59/100 (C).
HCM
Hold42
out of 100
Grade: D
MRK
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+52.3%
Fair Value
$31.70
Current Price
$13.36
$18.34 discount
Margin of Safety
-13.2%
Fair Value
$96.48
Current Price
$109.18
$12.70 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 45 in profit
Keeps 83 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
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
Weak financial health signals
Revenue declined 16.5%
Earnings declined 98.1%
Negative free cash flow — burning cash
Weak financial health signals
Expensive relative to growth rate
Earnings declined 19.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : HCM
The strongest argument for HCM centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 83.3% and operating margin at -13.2%.
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 : HCM
The primary concerns for HCM are Piotroski F-Score, Revenue Growth, EPS Growth.
Bear Case : MRK
The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
HCM profiles as a declining stock while MRK is a value play — different risk/reward profiles.
HCM carries more volatility with a beta of 0.45 — 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.
Bottom Line
MRK scores higher overall (59/100 vs 42/100), backed by strong 28.1% margins. HCM offers better value entry with a 52.3% 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.
HUTCHMED DRC
HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA
HUTCHMED (China) Limited discovers, develops and markets targeted immunotherapies and therapies for cancer and immune diseases globally. The company is headquartered in Central, Hong Kong.
Visit Website →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.
Visit Website →Compare with Other DRUG MANUFACTURERS - SPECIALTY & GENERIC Stocks
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