Merck & Company Inc (MRK)vsNovartis AG ADR (NVS)
MRK
Merck & Company Inc
$112.16
+2.73%
HEALTHCARE · Cap: $274.03B
NVS
Novartis AG ADR
$146.57
-0.87%
HEALTHCARE · Cap: $282.11B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 15% more annual revenue ($65.01B vs $56.58B). MRK leads profitability with a 28.1% profit margin vs 23.9%. NVS appears more attractively valued with a PEG of 2.48. MRK earns a higher WallStSmart Score of 59/100 (C).
MRK
Buy59
out of 100
Grade: C
NVS
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-16.2%
Fair Value
$96.56
Current Price
$112.16
$15.60 premium
Margin of Safety
-52.2%
Fair Value
$109.78
Current Price
$146.57
$36.79 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
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
Weak financial health signals
Expensive relative to growth rate
Earnings declined 19.3%
Expensive relative to growth rate
Grey zone — moderate risk
Revenue declined 0.7%
Earnings declined 9.3%
Comparative Analysis Report
WallStSmart ResearchBull 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 : 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 Piotroski F-Score, PEG Ratio, EPS Growth.
Bear Case : NVS
The primary concerns for NVS are PEG Ratio, Altman Z-Score, Revenue Growth.
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 0.52 — expect wider price swings.
MRK is growing revenue faster at 5.0% — sustainability is the question.
NVS generates stronger free cash flow (2.9B), providing more financial flexibility.
Bottom Line
MRK scores higher overall (59/100 vs 51/100), backed by strong 28.1% margins. 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 →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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