Merck & Company Inc (MRK)vsNovartis AG ADR (NVS)
MRK
Merck & Company Inc
$144.94
+0.78%
HEALTHCARE · Cap: $355.10B
NVS
Novartis AG ADR
$138.62
+0.06%
HEALTHCARE · Cap: $260.70B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 17% more annual revenue ($66.57B vs $56.69B). NVS leads profitability with a 22.5% profit margin vs 4.8%. MRK appears more attractively valued with a PEG of 2.64. NVS earns a higher WallStSmart Score of 51/100 (C-).
MRK
Hold36
out of 100
Grade: F
NVS
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-73.7%
Fair Value
$82.84
Current Price
$144.94
$62.10 premium
Margin of Safety
-47.0%
Fair Value
$93.29
Current Price
$138.62
$45.33 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Generating 4.5B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 31 in profit
Strong operational efficiency at 34.6%
Keeps 23 of every $100 in revenue as profit
Generating 5.6B in free cash flow
Areas to Watch
Trading at 8.5x book value
ROE of 7.6% — below average capital efficiency
4.8% margin — thin
Elevated debt levels
0.8% revenue growth
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Free Cash Flow.
Bull Case : NVS
The strongest argument for NVS centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 22.5% and operating margin at 34.6%.
Bear Case : MRK
The primary concerns for MRK are Price/Book, Return on Equity, Profit Margin. A P/E of 116.1x leaves little room for execution misses. Thin 4.8% margins leave little buffer for downturns.
Bear Case : NVS
The primary concerns for NVS are Revenue Growth, Altman Z-Score, Debt/Equity.
Key Dynamics to Monitor
NVS carries more volatility with a beta of 0.49 — expect wider price swings.
MRK is growing revenue faster at 5.1% — sustainability is the question.
NVS generates stronger free cash flow (5.6B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
NVS scores higher overall (51/100 vs 36/100), backed by strong 22.5% 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.
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 →Novartis AG ADR
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Novartis AG researches, develops, manufactures and markets medical devices worldwide. The company is headquartered in Basel, Switzerland.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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