WallStSmart

InMode Ltd (INMD)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 17670% more annual revenue ($66.57B vs $374.63M). INMD leads profitability with a 20.7% profit margin vs 4.8%. MRK appears more attractively valued with a PEG of 2.64. INMD earns a higher WallStSmart Score of 52/100 (C-).

INMD

Buy

52

out of 100

Grade: C-

Growth: 2.7Profit: 6.5Value: 6.7Quality: 8.5
Piotroski: 2/9Altman Z: 8.64

MRK

Hold

36

out of 100

Grade: F

Growth: 4.0Profit: 4.5Value: 2.0Quality: 5.0
Piotroski: 3/9Altman Z: 2.27
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

INMDUndervalued (+59.5%)

Margin of Safety

+59.5%

Fair Value

$35.20

Current Price

$14.90

$20.30 discount

UndervaluedFair: $35.20Overvalued
MRKSignificantly Overvalued (-73.7%)

Margin of Safety

-73.7%

Fair Value

$82.84

Current Price

$143.93

$61.09 premium

UndervaluedFair: $82.84Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

INMD5 strengths · Avg: 9.4/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
8.6410/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
20.7%9/10

Keeps 21 of every $100 in revenue as profit

P/E RatioValuation
12.4x8/10

Attractively priced relative to earnings

MRK2 strengths · Avg: 9.0/10
Market CapQuality
$355.10B10/10

Mega-cap, among the largest globally

Free Cash FlowQuality
$4.48B8/10

Generating 4.5B in free cash flow

Areas to Watch

INMD4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
0.0%4/10

0.0% revenue growth

Market CapQuality
$860.28M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
2.902/10

Expensive relative to growth rate

MRK4 concerns · Avg: 3.3/10
Price/BookValuation
8.5x4/10

Trading at 8.5x book value

Return on EquityProfitability
7.6%3/10

ROE of 7.6% — below average capital efficiency

Profit MarginProfitability
4.8%3/10

4.8% margin — thin

Debt/EquityHealth
1.293/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : INMD

The strongest argument for INMD centers on Price/Book, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 20.7% and operating margin at 12.8%.

Bull Case : MRK

The strongest argument for MRK centers on Market Cap, Free Cash Flow.

Bear Case : INMD

The primary concerns for INMD are Revenue Growth, Market Cap, Piotroski F-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

INMD carries more volatility with a beta of 1.87 — expect wider price swings.

MRK is growing revenue faster at 5.1% — sustainability is the question.

MRK generates stronger free cash flow (4.5B), providing more financial flexibility.

Monitor MEDICAL DEVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

INMD scores higher overall (52/100 vs 36/100), backed by strong 20.7% 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.

InMode Ltd

HEALTHCARE · MEDICAL DEVICES · USA

InMode Ltd. designs, develops, manufactures and markets minimally invasive aesthetic medical products based on its proprietary RF-assisted lipolysis and deep subdermal fractional RF technologies. The company is headquartered in Yokneam, Israel.

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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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