Intuitive Surgical Inc (ISRG)vsMerck & Company Inc (MRK)
ISRG
Intuitive Surgical Inc
$373.71
+1.36%
HEALTHCARE · Cap: $131.94B
MRK
Merck & Company Inc
$128.57
+0.16%
HEALTHCARE · Cap: $316.14B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 496% more annual revenue ($65.77B vs $11.03B). ISRG leads profitability with a 28.4% profit margin vs 13.6%. ISRG appears more attractively valued with a PEG of 1.73. ISRG earns a higher WallStSmart Score of 66/100 (B-).
ISRG
Strong Buy66
out of 100
Grade: B-
MRK
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+80.5%
Fair Value
$1922.89
Current Price
$373.71
$1549.18 discount
Margin of Safety
-58.0%
Fair Value
$81.23
Current Price
$128.57
$47.34 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 33.6%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Keeps 28 of every $100 in revenue as profit
18.5% revenue growth
Earnings expanding 26.5% YoY
Mega-cap, among the largest globally
Strong operational efficiency at 38.6%
Generating 2.9B in free cash flow
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Premium valuation, high expectations priced in
4.9% revenue growth
Elevated debt levels
Weak financial health signals
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 28.4% and operating margin at 33.6%. Revenue growth of 18.5% 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, P/E Ratio.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Debt/Equity.
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 18.5% — sustainability is the question.
MRK generates stronger free cash flow (2.9B), providing more financial flexibility.
Bottom Line
ISRG scores higher overall (66/100 vs 50/100), backed by strong 28.4% margins and 18.5% revenue growth. Both earn "Strong 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.
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