WallStSmart

Merck & Company Inc (MRK)vsOutset Medical Inc (OM)

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Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 56409% more annual revenue ($66.57B vs $117.80M). MRK leads profitability with a 4.8% profit margin vs -63.1%. OM earns a higher WallStSmart Score of 39/100 (F).

MRK

Hold

36

out of 100

Grade: F

Growth: 4.0Profit: 4.5Value: 2.0Quality: 5.0
Piotroski: 3/9Altman Z: 2.27

OM

Hold

39

out of 100

Grade: F

Growth: 4.0Profit: 2.0Value: 5.0Quality: 6.0
Piotroski: 6/9Altman Z: -5.06
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MRKSignificantly Overvalued (-73.7%)

Margin of Safety

-73.7%

Fair Value

$82.84

Current Price

$143.93

$61.09 premium

UndervaluedFair: $82.84Overvalued

Intrinsic value data unavailable for OM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MRK2 strengths · Avg: 9.0/10
Market CapQuality
$355.10B10/10

Mega-cap, among the largest globally

Free Cash FlowQuality
$4.48B8/10

Generating 4.5B in free cash flow

OM1 strengths · Avg: 10.0/10
Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Areas to Watch

MRK4 concerns · Avg: 3.3/10
Price/BookValuation
8.5x4/10

Trading at 8.5x book value

Return on EquityProfitability
7.6%3/10

ROE of 7.6% — below average capital efficiency

Profit MarginProfitability
4.8%3/10

4.8% margin — thin

Debt/EquityHealth
1.293/10

Elevated debt levels

OM4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
0.7%4/10

0.7% revenue growth

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$68.99M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.083/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : MRK

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

Bull Case : OM

The strongest argument for OM centers on Price/Book.

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 : OM

The primary concerns for OM are Revenue Growth, EPS Growth, Market Cap.

Key Dynamics to Monitor

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

OM carries more volatility with a beta of 1.92 — expect wider price swings.

MRK is growing revenue faster at 5.1% — sustainability is the question.

MRK generates stronger free cash flow (4.5B), providing more financial flexibility.

Bottom Line

OM scores higher overall (39/100 vs 36/100). 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.

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Outset Medical Inc

HEALTHCARE · MEDICAL DEVICES · USA

Outset Medical, Inc., a medical technology company, develops a hemodialysis system for dialysis. The company is headquartered in San Jose, California.

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