Merck & Company Inc (MRK)vsNovartis AG ADR (NVS)
MRK
Merck & Company Inc
$120.79
-1.34%
HEALTHCARE · Cap: $283.78B
NVS
Novartis AG ADR
$148.38
-2.51%
HEALTHCARE · Cap: $289.19B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 16% more annual revenue ($65.77B vs $56.58B). NVS leads profitability with a 23.9% profit margin vs 13.6%. NVS appears more attractively valued with a PEG of 4.11. MRK earns a higher WallStSmart Score of 50/100 (D+).
MRK
Hold50
out of 100
Grade: D+
NVS
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-42.4%
Fair Value
$80.88
Current Price
$120.79
$39.91 premium
Margin of Safety
-65.2%
Fair Value
$91.39
Current Price
$148.38
$56.99 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 38.6%
Generating 2.9B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Strong operational efficiency at 30.5%
Keeps 24 of every $100 in revenue as profit
Generating 2.9B in free cash flow
Areas to Watch
Premium valuation, high expectations priced in
4.9% revenue growth
Elevated debt levels
Weak financial health signals
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
Revenue declined 0.7%
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, 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 23.9% and operating margin at 30.5%.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Debt/Equity.
Bear Case : NVS
The primary concerns for NVS are Altman Z-Score, Debt/Equity, PEG Ratio.
Key Dynamics to Monitor
MRK profiles as a value stock while NVS is a declining play — different risk/reward profiles.
NVS carries more volatility with a beta of 0.49 — expect wider price swings.
MRK is growing revenue faster at 4.9% — 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 49/100). 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.
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
Want to dig deeper into these stocks?