Merck & Company Inc (MRK)vsOutset Medical Inc (OM)
MRK
Merck & Company Inc
$109.18
+2.73%
HEALTHCARE · Cap: $274.03B
OM
Outset Medical Inc
$4.36
+2.11%
HEALTHCARE · Cap: $81.71M
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 54313% more annual revenue ($65.01B vs $119.48M). MRK leads profitability with a 28.1% profit margin vs -68.3%. MRK earns a higher WallStSmart Score of 59/100 (C).
MRK
Buy59
out of 100
Grade: C
OM
Hold37
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-16.2%
Fair Value
$96.56
Current Price
$109.18
$12.62 premium
Margin of Safety
+83.6%
Fair Value
$27.66
Current Price
$4.36
$23.30 discount
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
Reasonable price relative to book value
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Earnings declined 19.3%
0.0% earnings growth
Smaller company, higher risk/reward
ROE of -106.2% — below average capital efficiency
Revenue declined 2.0%
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 : OM
The strongest argument for OM centers on Price/Book.
Bear Case : MRK
The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.
Bear Case : OM
The primary concerns for OM are EPS Growth, Market Cap, Return on Equity.
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 1.96 — 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.
Bottom Line
MRK scores higher overall (59/100 vs 37/100), backed by strong 28.1% margins. OM offers better value entry with a 83.6% margin of safety. 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 →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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