HUTCHMED DRC (HCM)vsMerck & Company Inc (MRK)
HCM
HUTCHMED DRC
$10.87
-2.69%
HEALTHCARE · Cap: $1.96B
MRK
Merck & Company Inc
$120.79
-3.46%
HEALTHCARE · Cap: $285.64B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 11890% more annual revenue ($65.77B vs $548.51M). HCM leads profitability with a 83.3% profit margin vs 13.6%. HCM trades at a lower P/E of 4.3x. MRK earns a higher WallStSmart Score of 50/100 (D+).
HCM
Hold43
out of 100
Grade: D
MRK
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+44.0%
Fair Value
$26.99
Current Price
$10.87
$16.12 discount
Margin of Safety
-49.3%
Fair Value
$80.88
Current Price
$120.79
$39.91 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 38 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
Strong operational efficiency at 38.6%
Generating 2.9B in free cash flow
Areas to Watch
Smaller company, higher risk/reward
Weak financial health signals
Revenue declined 16.5%
Earnings declined 98.1%
Premium valuation, high expectations priced in
4.9% revenue growth
Elevated debt levels
Weak financial health signals
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, Operating Margin, Free Cash Flow.
Bear Case : HCM
The primary concerns for HCM are Market Cap, Piotroski F-Score, Revenue Growth.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Debt/Equity.
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 0.38 — 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.
Bottom Line
MRK scores higher overall (50/100 vs 43/100). HCM offers better value entry with a 44.0% margin of safety. Both earn "Hold" 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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