WallStSmart

Mercer International Inc (MERC)vsSociedad Quimica y Minera de Chile SA ADR B (SQM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sociedad Quimica y Minera de Chile SA ADR B generates 186% more annual revenue ($5.30B vs $1.85B). SQM leads profitability with a 15.4% profit margin vs -28.5%. SQM appears more attractively valued with a PEG of 0.34. SQM earns a higher WallStSmart Score of 74/100 (B).

MERC

Avoid

33

out of 100

Grade: F

Growth: 2.0Profit: 2.0Value: 6.3Quality: 6.0
Piotroski: 2/9Altman Z: 0.79

SQM

Strong Buy

74

out of 100

Grade: B

Growth: 7.3Profit: 7.5Value: 7.0Quality: 7.0
Piotroski: 4/9Altman Z: 2.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MERCUndervalued (+85.5%)

Margin of Safety

+85.5%

Fair Value

$11.92

Current Price

$0.87

$11.05 discount

UndervaluedFair: $11.92Overvalued

Intrinsic value data unavailable for SQM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MERC1 strengths · Avg: 10.0/10
Debt/EquityHealth
-292.7810/10

Conservative balance sheet, low leverage

SQM4 strengths · Avg: 10.0/10
PEG RatioValuation
0.3410/10

Growing faster than its price suggests

Operating MarginProfitability
41.1%10/10

Strong operational efficiency at 41.1%

Revenue GrowthGrowth
69.8%10/10

Revenue surging 69.8% year-over-year

EPS GrowthGrowth
165.2%10/10

Earnings expanding 165.2% YoY

Areas to Watch

MERC4 concerns · Avg: 3.0/10
PEG RatioValuation
2.294/10

Expensive relative to growth rate

Market CapQuality
$56.27M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Return on EquityProfitability
-244.3%2/10

ROE of -244.3% — below average capital efficiency

SQM1 concerns · Avg: 4.0/10
P/E RatioValuation
26.4x4/10

Moderate valuation

Comparative Analysis Report

WallStSmart Research

Bull Case : MERC

The strongest argument for MERC centers on Debt/Equity.

Bull Case : SQM

The strongest argument for SQM centers on PEG Ratio, Operating Margin, Revenue Growth. Profitability is solid with margins at 15.4% and operating margin at 41.1%. Revenue growth of 69.8% demonstrates continued momentum.

Bear Case : MERC

The primary concerns for MERC are PEG Ratio, Market Cap, Piotroski F-Score.

Bear Case : SQM

The primary concerns for SQM are P/E Ratio.

Key Dynamics to Monitor

MERC profiles as a turnaround stock while SQM is a growth play — different risk/reward profiles.

SQM carries more volatility with a beta of 0.97 — expect wider price swings.

SQM is growing revenue faster at 69.8% — sustainability is the question.

SQM generates stronger free cash flow (679M), providing more financial flexibility.

Bottom Line

SQM scores higher overall (74/100 vs 33/100), backed by strong 15.4% margins and 69.8% revenue growth. MERC offers better value entry with a 85.5% margin of safety. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Mercer International Inc

BASIC MATERIALS · PAPER & PAPER PRODUCTS · USA

Mercer International Inc., manufactures and sells Northern Bleached Softwood Kraft Pulp (NBSK) in Europe, the United States, Asia and internationally. The company is headquartered in Vancouver, Canada.

Sociedad Quimica y Minera de Chile SA ADR B

BASIC MATERIALS · SPECIALTY CHEMICALS · USA

Sociedad Qumica y Minera de Chile SA produces and distributes specialty plant nutrients, iodine and its derivatives, lithium and its derivatives, potassium chloride and sulfate, industrial chemicals and other products and services worldwide. The company is headquartered in Santiago, Chile.

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