Intuitive Surgical Inc (ISRG)vsMerck & Company Inc (MRK)
ISRG
Intuitive Surgical Inc
$468.52
-3.36%
HEALTHCARE · Cap: $152.62B
MRK
Merck & Company Inc
$146.72
-0.14%
HEALTHCARE · Cap: $368.89B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 482% more annual revenue ($67.38B vs $11.58B). ISRG leads profitability with a 25.5% profit margin vs 3.6%. ISRG appears more attractively valued with a PEG of 2.00. ISRG earns a higher WallStSmart Score of 58/100 (C).
ISRG
Buy58
out of 100
Grade: C
MRK
Hold44
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+78.3%
Fair Value
$1989.68
Current Price
$468.52
$1521.16 discount
Margin of Safety
-76.6%
Fair Value
$84.66
Current Price
$146.72
$62.06 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 33.3%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Keeps 26 of every $100 in revenue as profit
Revenue surging 21.7% year-over-year
Generating 1.1B in free cash flow
Mega-cap, among the largest globally
Strong operational efficiency at 41.2%
Generating 4.5B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 10.2x book value
Premium valuation, high expectations priced in
Earnings declined 23.6%
Trading at 8.6x book value
4.7% revenue growth
ROE of 7.6% — below average capital efficiency
3.6% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : ISRG
The strongest argument for ISRG centers on Operating Margin, Altman Z-Score, Market Cap. Profitability is solid with margins at 25.5% and operating margin at 33.3%. Revenue growth of 21.7% demonstrates continued momentum.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bear Case : ISRG
The primary concerns for ISRG are PEG Ratio, Price/Book, P/E Ratio. A P/E of 52.2x leaves little room for execution misses.
Bear Case : MRK
The primary concerns for MRK are Price/Book, Revenue Growth, Return on Equity. A P/E of 151.0x leaves little room for execution misses. Thin 3.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
ISRG profiles as a growth stock while MRK is a value play — different risk/reward profiles.
ISRG carries more volatility with a beta of 1.46 — expect wider price swings.
ISRG is growing revenue faster at 21.7% — sustainability is the question.
MRK generates stronger free cash flow (4.5B), providing more financial flexibility.
Bottom Line
ISRG scores higher overall (58/100 vs 44/100), backed by strong 25.5% margins and 21.7% revenue growth. 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.
Intuitive Surgical Inc
HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA
Intuitive Surgical, Inc. is an American corporation that develops, manufactures, and markets robotic products designed to improve clinical outcomes of patients through minimally invasive surgery, most notably with the da Vinci Surgical System.
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.
Visit Website →Compare with Other MEDICAL INSTRUMENTS & SUPPLIES Stocks
Want to dig deeper into these stocks?