Medtronic PLC (MDT)vsMerck & Company Inc (MRK)
MDT
Medtronic PLC
$101.61
-0.61%
HEALTHCARE · Cap: $123.49B
MRK
Merck & Company Inc
$146.99
-0.16%
HEALTHCARE · Cap: $368.89B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 79% more annual revenue ($67.38B vs $37.54B). MDT leads profitability with a 13.9% profit margin vs 3.6%. MDT appears more attractively valued with a PEG of 1.73. MDT earns a higher WallStSmart Score of 68/100 (B-).
MDT
Strong Buy68
out of 100
Grade: B-
MRK
Hold44
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-8.1%
Fair Value
$94.02
Current Price
$101.61
$7.59 premium
Margin of Safety
-72.9%
Fair Value
$84.87
Current Price
$146.99
$62.12 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Reasonable price relative to book value
Earnings expanding 40.7% YoY
Generating 1.3B in free cash flow
Mega-cap, among the largest globally
Strong operational efficiency at 41.2%
Generating 5.5B in free cash flow
Areas to Watch
Expensive relative to growth rate
Grey zone — moderate risk
Trading at 8.7x book value
4.7% revenue growth
ROE of 5.5% — below average capital efficiency
3.6% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull 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, Operating Margin, 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, 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
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 (5.5B), providing more financial flexibility.
Monitor MEDICAL DEVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MDT scores higher overall (68/100 vs 44/100) 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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