WallStSmart

Insmed Inc (INSM)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 7925% more annual revenue ($65.77B vs $819.56M). MRK leads profitability with a 13.6% profit margin vs -144.4%. INSM appears more attractively valued with a PEG of 1.09. MRK earns a higher WallStSmart Score of 50/100 (D+).

INSM

Hold

39

out of 100

Grade: F

Growth: 8.0Profit: 2.0Value: 4.3Quality: 5.5
Piotroski: 4/9Altman Z: -3.96

MRK

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 8.0Value: 2.7Quality: 5.0
Piotroski: 3/9Altman Z: 2.30
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

INSMSignificantly Overvalued (-16.6%)

Margin of Safety

-16.6%

Fair Value

$83.92

Current Price

$104.92

$21.00 premium

UndervaluedFair: $83.92Overvalued
MRKSignificantly Overvalued (-49.3%)

Margin of Safety

-49.3%

Fair Value

$80.88

Current Price

$120.79

$39.91 premium

UndervaluedFair: $80.88Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

INSM1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
229.6%10/10

Revenue surging 229.6% year-over-year

MRK3 strengths · Avg: 9.3/10
Market CapQuality
$285.64B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
38.6%10/10

Strong operational efficiency at 38.6%

Free Cash FlowQuality
$2.93B8/10

Generating 2.9B in free cash flow

Areas to Watch

INSM4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Debt/EquityHealth
1.063/10

Elevated debt levels

Price/BookValuation
32.2x2/10

Trading at 32.2x book value

Return on EquityProfitability
-167.9%2/10

ROE of -167.9% — below average capital efficiency

MRK4 concerns · Avg: 3.5/10
P/E RatioValuation
32.6x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

Debt/EquityHealth
1.073/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : INSM

The strongest argument for INSM centers on Revenue Growth. Revenue growth of 229.6% demonstrates continued momentum. PEG of 1.09 suggests the stock is reasonably priced for its growth.

Bull Case : MRK

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

Bear Case : INSM

The primary concerns for INSM are EPS Growth, Debt/Equity, Price/Book.

Bear Case : MRK

The primary concerns for MRK are P/E Ratio, Revenue Growth, Debt/Equity.

Key Dynamics to Monitor

INSM profiles as a hypergrowth stock while MRK is a value play — different risk/reward profiles.

INSM carries more volatility with a beta of 0.77 — expect wider price swings.

INSM is growing revenue faster at 229.6% — 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 39/100). 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.

Insmed Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Insmed Incorporated, a biopharmaceutical company, develops and markets therapies for patients with rare and serious diseases. The company is headquartered in Bridgewater, New Jersey.

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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