WallStSmart

Medtronic PLC (MDT)vsMerck & Company Inc (MRK)

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Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 77% more annual revenue ($66.57B vs $37.54B). MDT leads profitability with a 13.9% profit margin vs 4.8%. MDT appears more attractively valued with a PEG of 1.63. MDT earns a higher WallStSmart Score of 68/100 (B-).

MDT

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 6.5Value: 5.3Quality: 6.5
Piotroski: 5/9Altman Z: 1.99

MRK

Hold

36

out of 100

Grade: F

Growth: 4.0Profit: 4.5Value: 2.0Quality: 5.0
Piotroski: 3/9Altman Z: 2.27
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MDTUndervalued (+6.2%)

Margin of Safety

+6.2%

Fair Value

$94.34

Current Price

$88.64

$5.70 discount

UndervaluedFair: $94.34Overvalued
MRKSignificantly Overvalued (-78.2%)

Margin of Safety

-78.2%

Fair Value

$83.04

Current Price

$148.78

$65.74 premium

UndervaluedFair: $83.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MDT4 strengths · Avg: 8.3/10
Market CapQuality
$114.23B9/10

Large-cap with strong market position

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

EPS GrowthGrowth
40.7%8/10

Earnings expanding 40.7% YoY

Free Cash FlowQuality
$1.29B8/10

Generating 1.3B in free cash flow

MRK2 strengths · Avg: 9.0/10
Market CapQuality
$365.34B10/10

Mega-cap, among the largest globally

Free Cash FlowQuality
$4.48B8/10

Generating 4.5B in free cash flow

Areas to Watch

MDT2 concerns · Avg: 4.0/10
PEG RatioValuation
1.634/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.994/10

Grey zone — moderate risk

MRK4 concerns · Avg: 3.3/10
Price/BookValuation
8.8x4/10

Trading at 8.8x book value

Return on EquityProfitability
7.6%3/10

ROE of 7.6% — below average capital efficiency

Profit MarginProfitability
4.8%3/10

4.8% margin — thin

Debt/EquityHealth
1.293/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : MDT

The strongest argument for MDT centers on Market Cap, Price/Book, EPS Growth. Revenue growth of 13.7% demonstrates continued momentum.

Bull Case : MRK

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

Bear Case : MDT

The primary concerns for MDT are PEG Ratio, Altman Z-Score.

Bear Case : MRK

The primary concerns for MRK are Price/Book, Return on Equity, Profit Margin. A P/E of 120.4x leaves little room for execution misses. Thin 4.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

MDT carries more volatility with a beta of 0.57 — expect wider price swings.

MDT is growing revenue faster at 13.7% — sustainability is the question.

MRK generates stronger free cash flow (4.5B), providing more financial flexibility.

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

Bottom Line

MDT scores higher overall (68/100 vs 36/100) and 13.7% 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.

Medtronic PLC

HEALTHCARE · MEDICAL DEVICES · USA

Medtronic plc is an American-Irish registered medical device company that primarily operates in the United States. Medtronic has an operational and executive headquarters in Fridley, Minnesota in the US.

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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