Merck & Company Inc (MRK)vsKoninklijke Philips NV ADR (PHG)
MRK
Merck & Company Inc
$120.79
-3.46%
HEALTHCARE · Cap: $285.64B
PHG
Koninklijke Philips NV ADR
$26.11
+0.46%
HEALTHCARE · Cap: $25.76B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 273% more annual revenue ($65.77B vs $17.64B). MRK leads profitability with a 13.6% profit margin vs 5.5%. PHG appears more attractively valued with a PEG of 0.87. PHG earns a higher WallStSmart Score of 57/100 (C).
MRK
Hold50
out of 100
Grade: D+
PHG
Buy57
out of 100
Grade: C
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
-55.6%
Fair Value
$20.61
Current Price
$26.11
$5.50 premium
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
Earnings expanding 97.2% YoY
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
Premium valuation, high expectations priced in
4.9% revenue growth
Elevated debt levels
Weak financial health signals
Distress zone — elevated risk
5.5% margin — thin
Revenue declined 4.7%
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bull Case : PHG
The strongest argument for PHG centers on EPS Growth, PEG Ratio, Price/Book. PEG of 0.87 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 : PHG
The primary concerns for PHG are Altman Z-Score, Profit Margin, Revenue Growth.
Key Dynamics to Monitor
PHG carries more volatility with a beta of 0.93 — 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.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PHG scores higher overall (57/100 vs 50/100). 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 →Koninklijke Philips NV ADR
HEALTHCARE · MEDICAL DEVICES · USA
Koninklijke Philips NV is a healthcare technology company in North America, Greater China and internationally. The company is headquartered in Amsterdam, the Netherlands.
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