WallStSmart

Merck & Company Inc (MRK)vsNational Research Corp (NRC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 47219% more annual revenue ($65.01B vs $137.39M). MRK leads profitability with a 28.1% profit margin vs 8.4%. NRC appears more attractively valued with a PEG of 1.32. MRK earns a higher WallStSmart Score of 59/100 (C).

MRK

Buy

59

out of 100

Grade: C

Growth: 4.0Profit: 9.5Value: 4.7Quality: 4.8
Piotroski: 3/9

NRC

Buy

50

out of 100

Grade: C-

Growth: 2.0Profit: 8.5Value: 6.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MRKOvervalued (-13.2%)

Margin of Safety

-13.2%

Fair Value

$96.48

Current Price

$110.95

$14.47 premium

UndervaluedFair: $96.48Overvalued
NRCUndervalued (+56.3%)

Margin of Safety

+56.3%

Fair Value

$31.44

Current Price

$16.46

$14.98 discount

UndervaluedFair: $31.44Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MRK6 strengths · Avg: 9.2/10
Market CapQuality
$274.03B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
36.9%10/10

Every $100 of equity generates 37 in profit

Operating MarginProfitability
32.8%10/10

Strong operational efficiency at 32.8%

Profit MarginProfitability
28.1%9/10

Keeps 28 of every $100 in revenue as profit

P/E RatioValuation
15.2x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.82B8/10

Generating 1.8B in free cash flow

NRC2 strengths · Avg: 10.0/10
Return on EquityProfitability
51.2%10/10

Every $100 of equity generates 51 in profit

Operating MarginProfitability
32.2%10/10

Strong operational efficiency at 32.2%

Areas to Watch

MRK3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.362/10

Expensive relative to growth rate

EPS GrowthGrowth
-19.3%2/10

Earnings declined 19.3%

NRC4 concerns · Avg: 2.8/10
P/E RatioValuation
34.2x4/10

Premium valuation, high expectations priced in

Market CapQuality
$389.19M3/10

Smaller company, higher risk/reward

Price/BookValuation
26.5x2/10

Trading at 26.5x book value

Revenue GrowthGrowth
-4.6%2/10

Revenue declined 4.6%

Comparative Analysis Report

WallStSmart Research

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%.

Bull Case : NRC

The strongest argument for NRC centers on Return on Equity, Operating Margin. PEG of 1.32 suggests the stock is reasonably priced for its growth.

Bear Case : MRK

The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.

Bear Case : NRC

The primary concerns for NRC are P/E Ratio, Market Cap, Price/Book.

Key Dynamics to Monitor

NRC carries more volatility with a beta of 0.41 — expect wider price swings.

MRK is growing revenue faster at 5.0% — sustainability is the question.

MRK generates stronger free cash flow (1.8B), providing more financial flexibility.

Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MRK scores higher overall (59/100 vs 50/100), backed by strong 28.1% margins. NRC offers better value entry with a 56.3% margin of safety. Both earn "Buy" and "Buy" 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.

Visit Website →

National Research Corp

HEALTHCARE · HEALTH INFORMATION SERVICES · USA

National Research Corporation provides analytics and information that make it easy to measure and improve the patient and employee experience in the United States and Canada. The company is headquartered in Lincoln, Nebraska.

Want to dig deeper into these stocks?