Merck & Company Inc (MRK)vsPetroleo Brasileiro Petrobras SA ADR (PBR)
MRK
Merck & Company Inc
$120.79
-1.42%
HEALTHCARE · Cap: $285.64B
PBR
Petroleo Brasileiro Petrobras SA ADR
$17.75
+0.77%
ENERGY · Cap: $117.55B
Smart Verdict
WallStSmart Research — data-driven comparison
Petroleo Brasileiro Petrobras SA ADR generates 657% more annual revenue ($498.09B vs $65.77B). PBR leads profitability with a 21.6% profit margin vs 13.6%. PBR appears more attractively valued with a PEG of 4.57. PBR earns a higher WallStSmart Score of 66/100 (B-).
MRK
Hold50
out of 100
Grade: D+
PBR
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-49.3%
Fair Value
$80.88
Current Price
$120.79
$39.91 premium
Margin of Safety
+89.6%
Fair Value
$176.60
Current Price
$17.75
$158.85 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 38.6%
Generating 2.9B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 32.0%
Large-cap with strong market position
Every $100 of equity generates 24 in profit
Keeps 22 of every $100 in revenue as profit
Areas to Watch
Premium valuation, high expectations priced in
4.9% revenue growth
Elevated debt levels
Weak financial health signals
0.4% revenue growth
Expensive relative to growth rate
Earnings declined 7.2%
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bull Case : PBR
The strongest argument for PBR centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 21.6% and operating margin at 32.0%.
Bear Case : MRK
The primary concerns for MRK are P/E Ratio, Revenue Growth, Debt/Equity.
Bear Case : PBR
The primary concerns for PBR are Revenue Growth, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
MRK carries more volatility with a beta of 0.20 — expect wider price swings.
MRK is growing revenue faster at 4.9% — sustainability is the question.
PBR generates stronger free cash flow (3.3B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PBR scores higher overall (66/100 vs 50/100), backed by strong 21.6% 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.
Visit Website →Petroleo Brasileiro Petrobras SA ADR
ENERGY · OIL & GAS INTEGRATED · USA
Petrleo Brasileiro SA - Petrobras produces and sells oil and gas in Brazil and internationally. The company is headquartered in Rio de Janeiro, Brazil.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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