WallStSmart

Merck & Company Inc (MRK)vsNeoGenomics Inc (NEO)

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Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 8716% more annual revenue ($65.77B vs $745.97M). MRK leads profitability with a 13.6% profit margin vs -13.3%. NEO appears more attractively valued with a PEG of 2.09. MRK earns a higher WallStSmart Score of 50/100 (D+).

MRK

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 8.0Value: 2.7Quality: 5.0
Piotroski: 3/9Altman Z: 2.27

NEO

Hold

46

out of 100

Grade: D+

Growth: 8.0Profit: 2.0Value: 6.3Quality: 6.5
Piotroski: 3/9Altman Z: 1.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MRKSignificantly Overvalued (-62.3%)

Margin of Safety

-62.3%

Fair Value

$81.23

Current Price

$129.79

$48.56 premium

UndervaluedFair: $81.23Overvalued
NEOUndervalued (+77.5%)

Margin of Safety

+77.5%

Fair Value

$50.82

Current Price

$15.27

$35.55 discount

UndervaluedFair: $50.82Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MRK3 strengths · Avg: 9.3/10
Market CapQuality
$307.25B10/10

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

NEO2 strengths · Avg: 9.0/10
EPS GrowthGrowth
130.6%10/10

Earnings expanding 130.6% YoY

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Areas to Watch

MRK4 concerns · Avg: 3.5/10
P/E RatioValuation
35.6x4/10

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

NEO4 concerns · Avg: 3.0/10
PEG RatioValuation
2.094/10

Expensive relative to growth rate

Market CapQuality
$1.88B3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-12.0%2/10

ROE of -12.0% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : MRK

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

Bull Case : NEO

The strongest argument for NEO centers on EPS Growth, Price/Book. Revenue growth of 11.1% demonstrates continued momentum.

Bear Case : MRK

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

Bear Case : NEO

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

Key Dynamics to Monitor

MRK profiles as a value stock while NEO is a turnaround play — different risk/reward profiles.

NEO carries more volatility with a beta of 1.74 — expect wider price swings.

NEO is growing revenue faster at 11.1% — sustainability is the question.

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

Bottom Line

MRK scores higher overall (50/100 vs 46/100). NEO offers better value entry with a 77.5% margin of safety. Both earn "Hold" 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.

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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NeoGenomics Inc

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

NeoGenomics, Inc. operates a network of cancer-focused testing laboratories in the United States, Europe, and Asia. The company is headquartered in Fort Myers, Florida.

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