WallStSmart

Haleon plc (HLN)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 489% more annual revenue ($65.01B vs $11.03B). MRK leads profitability with a 28.1% profit margin vs 15.1%. HLN appears more attractively valued with a PEG of 2.50. HLN earns a higher WallStSmart Score of 63/100 (C+).

HLN

Buy

63

out of 100

Grade: C+

Growth: 5.3Profit: 7.0Value: 4.0Quality: 5.5
Piotroski: 5/9Altman Z: 2.19

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

HLNSignificantly Overvalued (-23.0%)

Margin of Safety

-23.0%

Fair Value

$9.07

Current Price

$9.47

$0.40 premium

UndervaluedFair: $9.07Overvalued
MRKSignificantly Overvalued (-15.1%)

Margin of Safety

-15.1%

Fair Value

$96.48

Current Price

$110.95

$14.47 premium

UndervaluedFair: $96.48Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HLN4 strengths · Avg: 8.5/10
EPS GrowthGrowth
92.0%10/10

Earnings expanding 92.0% YoY

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.2%8/10

Strong operational efficiency at 23.2%

Free Cash FlowQuality
$1.26B8/10

Generating 1.3B in free cash flow

MRK6 strengths · Avg: 9.2/10
Market CapQuality
$276.38B10/10

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
15.4x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.82B8/10

Generating 1.8B in free cash flow

Areas to Watch

HLN2 concerns · Avg: 4.0/10
PEG RatioValuation
2.504/10

Expensive relative to growth rate

Revenue GrowthGrowth
0.6%4/10

0.6% revenue growth

MRK3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.422/10

Expensive relative to growth rate

EPS GrowthGrowth
-19.3%2/10

Earnings declined 19.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : HLN

The strongest argument for HLN centers on EPS Growth, Price/Book, Operating Margin. Profitability is solid with margins at 15.1% and operating margin at 23.2%.

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 : HLN

The primary concerns for HLN are PEG Ratio, Revenue Growth.

Bear Case : MRK

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

Key Dynamics to Monitor

HLN carries more volatility with a beta of 0.33 — 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.

Monitor DRUG MANUFACTURERS - SPECIALTY & GENERIC industry trends, competitive dynamics, and regulatory changes.

Bottom Line

HLN scores higher overall (63/100 vs 59/100), backed by strong 15.1% margins. Both earn "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.

Haleon plc

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Haleon plc (HLN) is a prominent global player in the consumer health sector, dedicated to providing innovative health solutions through its diverse portfolio, which includes renowned brands like Sensodyne, Panadol, and Voltaren. Established as a spin-off from GlaxoSmithKline, the company leverages its strong brand equity to cater to critical health segments such as oral care, pain relief, and dietary supplements. Committed to sustainability and consumer-centric innovation, Haleon is strategically positioned to enhance health outcomes worldwide while pursuing growth and generating value for its shareholders through targeted investments and continuous product development.

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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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