WallStSmart

Merck & Company Inc (MRK)vsPrestige Brand Holdings Inc (PBH)

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Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 5941% more annual revenue ($65.77B vs $1.09B). PBH leads profitability with a 17.5% profit margin vs 13.6%. PBH appears more attractively valued with a PEG of 1.45. PBH earns a higher WallStSmart Score of 65/100 (B-).

MRK

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 8.0Value: 2.7Quality: 5.0
Piotroski: 3/9Altman Z: 2.30

PBH

Strong Buy

65

out of 100

Grade: B-

Growth: 3.3Profit: 7.5Value: 5.3Quality: 7.0
Piotroski: 2/9Altman Z: 2.07
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MRKSignificantly Overvalued (-49.3%)

Margin of Safety

-49.3%

Fair Value

$80.88

Current Price

$120.79

$39.91 premium

UndervaluedFair: $80.88Overvalued
PBHSignificantly Overvalued (-54.8%)

Margin of Safety

-54.8%

Fair Value

$42.62

Current Price

$47.18

$4.56 premium

UndervaluedFair: $42.62Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MRK3 strengths · Avg: 9.3/10
Market CapQuality
$285.64B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
38.6%10/10

Strong operational efficiency at 38.6%

Free Cash FlowQuality
$2.93B8/10

Generating 2.9B in free cash flow

PBH3 strengths · Avg: 8.7/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

P/E RatioValuation
12.2x8/10

Attractively priced relative to earnings

Operating MarginProfitability
26.8%8/10

Strong operational efficiency at 26.8%

Areas to Watch

MRK4 concerns · Avg: 3.5/10
P/E RatioValuation
32.6x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

Debt/EquityHealth
1.073/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PBH2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Revenue GrowthGrowth
-5.0%2/10

Revenue declined 5.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : MRK

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

Bull Case : PBH

The strongest argument for PBH centers on Price/Book, P/E Ratio, Operating Margin. Profitability is solid with margins at 17.5% and operating margin at 26.8%. PEG of 1.45 suggests the stock is reasonably priced for its growth.

Bear Case : MRK

The primary concerns for MRK are P/E Ratio, Revenue Growth, Debt/Equity.

Bear Case : PBH

The primary concerns for PBH are Piotroski F-Score, Revenue Growth.

Key Dynamics to Monitor

MRK profiles as a value stock while PBH is a declining play — different risk/reward profiles.

PBH carries more volatility with a beta of 0.35 — 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

PBH scores higher overall (65/100 vs 50/100), backed by strong 17.5% margins. Both earn "Strong 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.

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Prestige Brand Holdings Inc

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Prestige Consumer Healthcare Inc., develops, manufactures, markets, distributes and sells over-the-counter (OTC) healthcare products in the United States and internationally. The company is headquartered in Tarrytown, New York.

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