WallStSmart

Krystal Biotech Inc (KRYS)vsMerck & Company Inc (MRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 15660% more annual revenue ($65.77B vs $417.30M). KRYS leads profitability with a 53.9% profit margin vs 13.6%. MRK trades at a lower P/E of 31.6x. KRYS earns a higher WallStSmart Score of 65/100 (C+).

KRYS

Buy

65

out of 100

Grade: C+

Growth: 8.3Profit: 9.0Value: 4.7Quality: 9.0
Piotroski: 4/9Altman Z: 7.95

MRK

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 8.0Value: 3.3Quality: 4.8
Piotroski: 2/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for KRYS.

MRKOvervalued (-14.9%)

Margin of Safety

-14.9%

Fair Value

$97.76

Current Price

$111.38

$13.62 premium

UndervaluedFair: $97.76Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KRYS6 strengths · Avg: 10.0/10
Profit MarginProfitability
53.9%10/10

Keeps 54 of every $100 in revenue as profit

Operating MarginProfitability
46.1%10/10

Strong operational efficiency at 46.1%

Revenue GrowthGrowth
31.9%10/10

Revenue surging 31.9% year-over-year

EPS GrowthGrowth
52.5%10/10

Earnings expanding 52.5% YoY

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
7.9510/10

Safe zone — low bankruptcy risk

MRK3 strengths · Avg: 9.3/10
Market CapQuality
$277.36B10/10

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

KRYS1 concerns · Avg: 4.0/10
P/E RatioValuation
39.7x4/10

Premium valuation, high expectations priced in

MRK4 concerns · Avg: 3.3/10
P/E RatioValuation
31.6x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
5.282/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : KRYS

The strongest argument for KRYS centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 53.9% and operating margin at 46.1%. Revenue growth of 31.9% demonstrates continued momentum.

Bull Case : MRK

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

Bear Case : KRYS

The primary concerns for KRYS are P/E Ratio.

Bear Case : MRK

The primary concerns for MRK are P/E Ratio, Revenue Growth, Piotroski F-Score.

Key Dynamics to Monitor

KRYS profiles as a growth stock while MRK is a value play — different risk/reward profiles.

KRYS carries more volatility with a beta of 0.49 — expect wider price swings.

KRYS is growing revenue faster at 31.9% — sustainability is the question.

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

Bottom Line

KRYS scores higher overall (65/100 vs 50/100), backed by strong 53.9% margins and 31.9% 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.

Krystal Biotech Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Krystal Biotech, Inc., a clinical-stage biotechnology company, is dedicated to the field of redosable gene therapy to treat serious rare diseases in the United States. The company is headquartered in Pittsburgh, Pennsylvania.

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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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