Altria Group (MO)vsMerck & Company Inc (MRK)
MO
Altria Group
$63.78
-0.84%
CONSUMER DEFENSIVE · Cap: $107.97B
MRK
Merck & Company Inc
$119.37
+2.58%
HEALTHCARE · Cap: $287.71B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 223% more annual revenue ($65.01B vs $20.14B). MO leads profitability with a 34.5% profit margin vs 28.1%. MO appears more attractively valued with a PEG of 1.65. MRK earns a higher WallStSmart Score of 59/100 (C).
MO
Hold47
out of 100
Grade: D+
MRK
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-135.3%
Fair Value
$28.02
Current Price
$63.78
$35.76 premium
Margin of Safety
-141.2%
Fair Value
$49.50
Current Price
$119.37
$69.87 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 35 of every $100 in revenue as profit
Strong operational efficiency at 57.1%
Conservative balance sheet, low leverage
Large-cap with strong market position
Attractively priced relative to earnings
Generating 3.2B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 37 in profit
Strong operational efficiency at 32.8%
Keeps 28 of every $100 in revenue as profit
Attractively priced relative to earnings
Generating 1.8B in free cash flow
Areas to Watch
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
Revenue declined 0.5%
Earnings declined 62.9%
Weak financial health signals
Expensive relative to growth rate
Earnings declined 19.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : MO
The strongest argument for MO centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 34.5% and operating margin at 57.1%.
Bull Case : MRK
The strongest argument for MRK centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 28.1% and operating margin at 32.8%.
Bear Case : MO
The primary concerns for MO are PEG Ratio, Return on Equity, Revenue Growth.
Bear Case : MRK
The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
MO profiles as a declining stock while MRK is a value play — different risk/reward profiles.
MO carries more volatility with a beta of 0.43 — expect wider price swings.
MRK is growing revenue faster at 5.0% — sustainability is the question.
MO generates stronger free cash flow (3.2B), providing more financial flexibility.
Bottom Line
MRK scores higher overall (59/100 vs 47/100), backed by strong 28.1% margins. 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.
Altria Group
CONSUMER DEFENSIVE · TOBACCO · USA
Altria Group, Inc. (previously known as Philip Morris Companies, Inc.) is an American corporation and one of the world's largest producers and marketers of tobacco, cigarettes and related products. It operates worldwide and is headquartered in unincorporated Henrico County, Virginia, just outside the city of Richmond.
Visit Website →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.
Visit Website →Compare with Other TOBACCO Stocks
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