WallStSmart

Inspire Medical Systems Inc (INSP)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 7086% more annual revenue ($65.77B vs $915.25M). INSP leads profitability with a 14.3% profit margin vs 13.6%. INSP trades at a lower P/E of 11.5x. INSP earns a higher WallStSmart Score of 56/100 (C).

INSP

Buy

56

out of 100

Grade: C

Growth: 8.0Profit: 5.5Value: 8.3Quality: 9.0
Piotroski: 5/9Altman Z: 5.38

MRK

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 8.0Value: 2.7Quality: 5.0
Piotroski: 3/9Altman Z: 2.27
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

INSPUndervalued (+84.8%)

Margin of Safety

+84.8%

Fair Value

$449.81

Current Price

$51.07

$398.74 discount

UndervaluedFair: $449.81Overvalued
MRKSignificantly Overvalued (-62.3%)

Margin of Safety

-62.3%

Fair Value

$81.23

Current Price

$129.79

$48.56 premium

UndervaluedFair: $81.23Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

INSP5 strengths · Avg: 9.6/10
P/E RatioValuation
11.5x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
308.4%10/10

Earnings expanding 308.4% YoY

Debt/EquityHealth
0.0410/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
5.3810/10

Safe zone — low bankruptcy risk

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

MRK3 strengths · Avg: 9.3/10
Market CapQuality
$307.25B10/10

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

INSP3 concerns · Avg: 2.7/10
Revenue GrowthGrowth
1.6%4/10

1.6% revenue growth

Market CapQuality
$1.53B3/10

Smaller company, higher risk/reward

Operating MarginProfitability
-0.6%1/10

Operating margin of -0.6%

MRK4 concerns · Avg: 3.5/10
P/E RatioValuation
35.6x4/10

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 : INSP

The strongest argument for INSP centers on P/E Ratio, EPS Growth, Debt/Equity.

Bull Case : MRK

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

Bear Case : INSP

The primary concerns for INSP are Revenue Growth, Market Cap, Operating Margin.

Bear Case : MRK

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

Key Dynamics to Monitor

INSP carries more volatility with a beta of 0.71 — expect wider price swings.

MRK is growing revenue faster at 4.9% — sustainability is the question.

MRK generates stronger free cash flow (2.9B), providing more financial flexibility.

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

Bottom Line

INSP scores higher overall (56/100 vs 50/100). 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.

Inspire Medical Systems Inc

HEALTHCARE · MEDICAL DEVICES · USA

Inspire Medical Systems, Inc., a medical technology company, focuses on the development and commercialization of minimally invasive solutions for patients with obstructive sleep apnea (OSA) in the United States and Europe. The company is headquartered in Golden Valley, Minnesota.

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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