WallStSmart

Merck & Company Inc (MRK)vsPhibro Animal Health Corporation (PAHC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 4340% more annual revenue ($65.01B vs $1.46B). MRK leads profitability with a 28.1% profit margin vs 6.3%. PAHC appears more attractively valued with a PEG of 1.68. PAHC earns a higher WallStSmart Score of 67/100 (B-).

MRK

Buy

59

out of 100

Grade: C

Growth: 4.0Profit: 9.5Value: 4.0Quality: 4.8
Piotroski: 3/9

PAHC

Strong Buy

67

out of 100

Grade: B-

Growth: 8.7Profit: 7.0Value: 6.7Quality: 6.5
Piotroski: 3/9Altman Z: 2.09
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MRKSignificantly Overvalued (-16.2%)

Margin of Safety

-16.2%

Fair Value

$96.56

Current Price

$109.18

$12.62 premium

UndervaluedFair: $96.56Overvalued
PAHCUndervalued (+60.0%)

Margin of Safety

+60.0%

Fair Value

$128.81

Current Price

$54.89

$73.92 discount

UndervaluedFair: $128.81Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MRK6 strengths · Avg: 9.2/10
Market CapQuality
$274.03B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
36.9%10/10

Every $100 of equity generates 37 in profit

Operating MarginProfitability
32.8%10/10

Strong operational efficiency at 32.8%

Profit MarginProfitability
28.1%9/10

Keeps 28 of every $100 in revenue as profit

P/E RatioValuation
15.2x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.82B8/10

Generating 1.8B in free cash flow

PAHC3 strengths · Avg: 9.3/10
Return on EquityProfitability
31.8%10/10

Every $100 of equity generates 32 in profit

EPS GrowthGrowth
752.0%10/10

Earnings expanding 752.0% YoY

Revenue GrowthGrowth
20.9%8/10

Revenue surging 20.9% year-over-year

Areas to Watch

MRK3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.362/10

Expensive relative to growth rate

EPS GrowthGrowth
-19.3%2/10

Earnings declined 19.3%

PAHC4 concerns · Avg: 3.3/10
PEG RatioValuation
1.684/10

Expensive relative to growth rate

Profit MarginProfitability
6.3%3/10

6.3% margin — thin

Debt/EquityHealth
1.823/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull 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 : PAHC

The strongest argument for PAHC centers on Return on Equity, EPS Growth, Revenue Growth. Revenue growth of 20.9% demonstrates continued momentum.

Bear Case : MRK

The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.

Bear Case : PAHC

The primary concerns for PAHC are PEG Ratio, Profit Margin, Debt/Equity. Debt-to-equity of 1.82 is elevated, increasing financial risk.

Key Dynamics to Monitor

MRK profiles as a value stock while PAHC is a growth play — different risk/reward profiles.

PAHC carries more volatility with a beta of 0.69 — expect wider price swings.

PAHC is growing revenue faster at 20.9% — sustainability is the question.

MRK generates stronger free cash flow (1.8B), providing more financial flexibility.

Bottom Line

PAHC scores higher overall (67/100 vs 59/100) and 20.9% revenue growth. Both earn "Strong 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.

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Phibro Animal Health Corporation

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Phibro Animal Health Corporation develops, manufactures and supplies a range of mineral nutrition and animal health products for livestock primarily in the United States. The company is headquartered in Teaneck, New Jersey.

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