Merck & Company Inc (MRK)vsKoninklijke Philips NV ADR (PHG)
MRK
Merck & Company Inc
$109.18
+2.74%
HEALTHCARE · Cap: $274.03B
PHG
Koninklijke Philips NV ADR
$26.34
+2.97%
HEALTHCARE · Cap: $24.33B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 265% more annual revenue ($65.01B vs $17.83B). MRK leads profitability with a 28.1% profit margin vs 5.0%. PHG appears more attractively valued with a PEG of 0.36. MRK earns a higher WallStSmart Score of 59/100 (C).
MRK
Buy59
out of 100
Grade: C
PHG
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-13.2%
Fair Value
$96.48
Current Price
$109.18
$12.70 premium
Margin of Safety
+3.8%
Fair Value
$33.33
Current Price
$26.34
$6.99 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
Growing faster than its price suggests
Reasonable price relative to book value
Generating 1.3B in free cash flow
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Earnings declined 19.3%
1.1% revenue growth
ROE of 7.8% — below average capital efficiency
5.0% margin — thin
Earnings declined 0.5%
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 : PHG
The strongest argument for PHG centers on PEG Ratio, Price/Book, Free Cash Flow. PEG of 0.36 suggests the stock is reasonably priced for its growth.
Bear Case : MRK
The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.
Bear Case : PHG
The primary concerns for PHG are Revenue Growth, Return on Equity, Profit Margin.
Key Dynamics to Monitor
PHG carries more volatility with a beta of 0.96 — 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.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MRK scores higher overall (59/100 vs 49/100), backed by strong 28.1% margins. 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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