WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 10620% more annual revenue ($65.01B vs $606.42M). MRK leads profitability with a 28.1% profit margin vs -210.5%. INSM appears more attractively valued with a PEG of 1.09. MRK earns a higher WallStSmart Score of 59/100 (C).

INSM

Hold

39

out of 100

Grade: F

Growth: 8.0Profit: 2.0Value: 5.3Quality: 6.3
Piotroski: 6/9Altman Z: -3.77

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

Intrinsic value data unavailable for INSM.

MRKSignificantly Overvalued (-141.3%)

Margin of Safety

-141.3%

Fair Value

$49.57

Current Price

$119.63

$70.06 premium

UndervaluedFair: $49.57Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

INSM1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
152.6%10/10

Revenue surging 152.6% year-over-year

MRK6 strengths · Avg: 9.2/10
Market CapQuality
$295.77B10/10

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
16.4x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.82B8/10

Generating 1.8B in free cash flow

Areas to Watch

INSM4 concerns · Avg: 2.5/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Price/BookValuation
42.1x2/10

Trading at 42.1x book value

Return on EquityProfitability
-249.3%2/10

ROE of -249.3% — below average capital efficiency

Free Cash FlowQuality
$-294.19M2/10

Negative free cash flow — burning cash

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

Weak financial health signals

PEG RatioValuation
3.492/10

Expensive relative to growth rate

EPS GrowthGrowth
-19.3%2/10

Earnings declined 19.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : INSM

The strongest argument for INSM centers on Revenue Growth. Revenue growth of 152.6% 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, Return on Equity, Operating Margin. Profitability is solid with margins at 28.1% and operating margin at 32.8%.

Bear Case : INSM

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

Bear Case : MRK

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

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 1.17 — expect wider price swings.

INSM is growing revenue faster at 152.6% — sustainability is the question.

MRK generates stronger free cash flow (1.8B), providing more financial flexibility.

Bottom Line

MRK scores higher overall (59/100 vs 39/100), backed by strong 28.1% 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.

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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