Illumina Inc (ILMN)vsMerck & Company Inc (MRK)
ILMN
Illumina Inc
$206.45
+2.57%
HEALTHCARE · Cap: $31.87B
MRK
Merck & Company Inc
$143.93
-0.54%
HEALTHCARE · Cap: $355.10B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 1381% more annual revenue ($66.57B vs $4.49B). ILMN leads profitability with a 18.3% profit margin vs 4.8%. MRK appears more attractively valued with a PEG of 2.64. ILMN earns a higher WallStSmart Score of 56/100 (C).
ILMN
Buy56
out of 100
Grade: C
MRK
Hold36
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+58.4%
Fair Value
$279.71
Current Price
$206.45
$73.26 discount
Margin of Safety
-73.7%
Fair Value
$82.84
Current Price
$143.93
$61.09 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 29 in profit
Strong operational efficiency at 21.1%
Mega-cap, among the largest globally
Generating 4.5B in free cash flow
Areas to Watch
Premium valuation, high expectations priced in
Trading at 11.0x book value
Grey zone — moderate risk
Expensive relative to growth rate
Trading at 8.5x book value
ROE of 7.6% — below average capital efficiency
4.8% margin — thin
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : ILMN
The strongest argument for ILMN centers on Return on Equity, Operating Margin. Profitability is solid with margins at 18.3% and operating margin at 21.1%.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Free Cash Flow.
Bear Case : ILMN
The primary concerns for ILMN are P/E Ratio, Price/Book, Altman Z-Score.
Bear Case : MRK
The primary concerns for MRK are Price/Book, Return on Equity, Profit Margin. A P/E of 116.1x leaves little room for execution misses. Thin 4.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
ILMN profiles as a mature stock while MRK is a value play — different risk/reward profiles.
ILMN carries more volatility with a beta of 1.47 — expect wider price swings.
ILMN is growing revenue faster at 9.4% — sustainability is the question.
MRK generates stronger free cash flow (4.5B), providing more financial flexibility.
Bottom Line
ILMN scores higher overall (56/100 vs 36/100), backed by strong 18.3% 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.
Illumina Inc
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Illumina, Inc. is an American company. Incorporated on April 1, 1998, Illumina develops, manufactures, and markets integrated systems for the analysis of genetic variation and biological function. The company provides a line of products and services that serves the sequencing, genotyping and gene expression, and proteomics markets. Its headquarters are located in San Diego, California.
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.
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