WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 7029% more annual revenue ($65.01B vs $911.98M). MRK leads profitability with a 28.1% profit margin vs 16.0%. INSP trades at a lower P/E of 10.9x. INSP earns a higher WallStSmart Score of 66/100 (B-).

INSP

Strong Buy

66

out of 100

Grade: B-

Growth: 8.7Profit: 7.5Value: 8.3Quality: 7.3
Piotroski: 3/9Altman Z: 5.12

MRK

Buy

59

out of 100

Grade: C

Growth: 4.0Profit: 9.5Value: 4.7Quality: 4.8
Piotroski: 3/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

INSPUndervalued (+86.9%)

Margin of Safety

+86.9%

Fair Value

$519.34

Current Price

$53.41

$465.93 discount

UndervaluedFair: $519.34Overvalued
MRKOvervalued (-13.2%)

Margin of Safety

-13.2%

Fair Value

$96.48

Current Price

$109.18

$12.70 premium

UndervaluedFair: $96.48Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

INSP4 strengths · Avg: 9.5/10
P/E RatioValuation
10.9x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
308.4%10/10

Earnings expanding 308.4% YoY

Altman Z-ScoreHealth
5.1210/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

MRK6 strengths · Avg: 9.2/10
Market CapQuality
$274.03B10/10

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
15.2x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.82B8/10

Generating 1.8B in free cash flow

Areas to Watch

INSP2 concerns · Avg: 3.0/10
Market CapQuality
$1.54B3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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

Weak financial health signals

PEG RatioValuation
3.362/10

Expensive relative to growth rate

EPS GrowthGrowth
-19.3%2/10

Earnings declined 19.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : INSP

The strongest argument for INSP centers on P/E Ratio, EPS Growth, Altman Z-Score. Profitability is solid with margins at 16.0% and operating margin at 17.1%. Revenue growth of 12.2% demonstrates continued momentum.

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 : INSP

The primary concerns for INSP are Market Cap, Piotroski F-Score.

Bear Case : MRK

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

Key Dynamics to Monitor

INSP profiles as a mature stock while MRK is a value play — different risk/reward profiles.

INSP carries more volatility with a beta of 0.86 — expect wider price swings.

INSP is growing revenue faster at 12.2% — sustainability is the question.

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

Bottom Line

INSP scores higher overall (66/100 vs 59/100), backed by strong 16.0% margins and 12.2% revenue growth. Both earn "Strong Buy" and "Buy" 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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