Merck & Company Inc (MRK)vsSouthern Company (SO)
MRK
Merck & Company Inc
$119.37
+2.58%
HEALTHCARE · Cap: $287.71B
SO
Southern Company
$94.61
+0.67%
UTILITIES · Cap: $105.91B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 120% more annual revenue ($65.01B vs $29.55B). MRK leads profitability with a 28.1% profit margin vs 14.7%. SO appears more attractively valued with a PEG of 2.67. MRK earns a higher WallStSmart Score of 59/100 (C).
MRK
Buy59
out of 100
Grade: C
SO
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-141.2%
Fair Value
$49.50
Current Price
$119.37
$69.87 premium
Margin of Safety
-254.9%
Fair Value
$26.66
Current Price
$94.61
$67.95 premium
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
Large-cap with strong market position
Reasonable price relative to book value
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Earnings declined 19.3%
Expensive relative to growth rate
Earnings declined 22.1%
Negative free cash flow — burning cash
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 : SO
The strongest argument for SO centers on Market Cap, Price/Book. Revenue growth of 10.1% demonstrates continued momentum.
Bear Case : MRK
The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.
Bear Case : SO
The primary concerns for SO are PEG Ratio, EPS Growth, Free Cash Flow.
Key Dynamics to Monitor
SO carries more volatility with a beta of 0.41 — expect wider price swings.
SO is growing revenue faster at 10.1% — 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 54/100), backed by strong 28.1% margins. Both earn "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.
Visit Website →Southern Company
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
Southern Company is an American gas and electric utility holding company based in the southern United States. It is headquartered in Atlanta, Georgia, with executive offices also located in Birmingham, Alabama.
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