WallStSmart

Medpace Holdings Inc (MEDP)vsMerck & Company Inc (MRK)

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Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 2356% more annual revenue ($65.77B vs $2.68B). MEDP leads profitability with a 17.2% profit margin vs 13.6%. MEDP appears more attractively valued with a PEG of 2.87. MEDP earns a higher WallStSmart Score of 66/100 (B-).

MEDP

Strong Buy

66

out of 100

Grade: B-

Growth: 8.7Profit: 9.0Value: 3.3Quality: 6.0
Piotroski: 4/9Altman Z: 1.83

MRK

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 8.0Value: 2.7Quality: 5.0
Piotroski: 3/9Altman Z: 2.30
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MEDPSignificantly Overvalued (-50.2%)

Margin of Safety

-50.2%

Fair Value

$282.31

Current Price

$454.25

$171.94 premium

UndervaluedFair: $282.31Overvalued
MRKSignificantly Overvalued (-49.3%)

Margin of Safety

-49.3%

Fair Value

$80.88

Current Price

$120.79

$39.91 premium

UndervaluedFair: $80.88Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MEDP4 strengths · Avg: 8.8/10
Return on EquityProfitability
77.0%10/10

Every $100 of equity generates 77 in profit

Debt/EquityHealth
0.249/10

Conservative balance sheet, low leverage

Operating MarginProfitability
20.0%8/10

Strong operational efficiency at 20.0%

Revenue GrowthGrowth
26.5%8/10

Revenue surging 26.5% year-over-year

MRK3 strengths · Avg: 9.3/10
Market CapQuality
$285.64B10/10

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

MEDP4 concerns · Avg: 3.0/10
P/E RatioValuation
29.4x4/10

Moderate valuation

Altman Z-ScoreHealth
1.834/10

Grey zone — moderate risk

PEG RatioValuation
2.872/10

Expensive relative to growth rate

Price/BookValuation
21.7x2/10

Trading at 21.7x book value

MRK4 concerns · Avg: 3.5/10
P/E RatioValuation
32.6x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

Debt/EquityHealth
1.073/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : MEDP

The strongest argument for MEDP centers on Return on Equity, Debt/Equity, Operating Margin. Profitability is solid with margins at 17.2% and operating margin at 20.0%. Revenue growth of 26.5% demonstrates continued momentum.

Bull Case : MRK

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

Bear Case : MEDP

The primary concerns for MEDP are P/E Ratio, Altman Z-Score, PEG Ratio.

Bear Case : MRK

The primary concerns for MRK are P/E Ratio, Revenue Growth, Debt/Equity.

Key Dynamics to Monitor

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

MEDP carries more volatility with a beta of 1.18 — expect wider price swings.

MEDP is growing revenue faster at 26.5% — sustainability is the question.

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

Bottom Line

MEDP scores higher overall (66/100 vs 50/100), backed by strong 17.2% margins and 26.5% 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.

Medpace Holdings Inc

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

Medpace Holdings, Inc. provides clinical research-based drug and medical device development services in North America, Europe, and Asia. The company is headquartered in Cincinnati, Ohio.

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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