WallStSmart

Merck & Company Inc (MRK)vsSociedad Quimica y Minera de Chile SA ADR B (SQM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 1337% more annual revenue ($65.77B vs $4.58B). MRK leads profitability with a 13.6% profit margin vs 12.9%. SQM appears more attractively valued with a PEG of 0.60. SQM earns a higher WallStSmart Score of 66/100 (B-).

MRK

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 8.0Value: 3.3Quality: 4.8
Piotroski: 2/9

SQM

Strong Buy

66

out of 100

Grade: B-

Growth: 6.7Profit: 7.0Value: 6.0Quality: 7.3
Piotroski: 6/9Altman Z: 2.01
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MRKOvervalued (-14.9%)

Margin of Safety

-14.9%

Fair Value

$97.76

Current Price

$111.38

$13.62 premium

UndervaluedFair: $97.76Overvalued
SQMUndervalued (+9.0%)

Margin of Safety

+9.0%

Fair Value

$82.67

Current Price

$91.60

$8.93 discount

UndervaluedFair: $82.67Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MRK3 strengths · Avg: 9.3/10
Market CapQuality
$277.36B10/10

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

SQM4 strengths · Avg: 8.5/10
EPS GrowthGrowth
52.3%10/10

Earnings expanding 52.3% YoY

PEG RatioValuation
0.608/10

Growing faster than its price suggests

Operating MarginProfitability
28.3%8/10

Strong operational efficiency at 28.3%

Revenue GrowthGrowth
23.3%8/10

Revenue surging 23.3% year-over-year

Areas to Watch

MRK4 concerns · Avg: 3.3/10
P/E RatioValuation
31.6x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
5.282/10

Expensive relative to growth rate

SQM1 concerns · Avg: 2.0/10
P/E RatioValuation
44.5x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : MRK

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

Bull Case : SQM

The strongest argument for SQM centers on EPS Growth, PEG Ratio, Operating Margin. Revenue growth of 23.3% demonstrates continued momentum. PEG of 0.60 suggests the stock is reasonably priced for its growth.

Bear Case : MRK

The primary concerns for MRK are P/E Ratio, Revenue Growth, Piotroski F-Score.

Bear Case : SQM

The primary concerns for SQM are P/E Ratio. A P/E of 44.5x leaves little room for execution misses.

Key Dynamics to Monitor

MRK profiles as a value stock while SQM is a growth play — different risk/reward profiles.

SQM carries more volatility with a beta of 1.03 — expect wider price swings.

SQM is growing revenue faster at 23.3% — sustainability is the question.

MRK generates stronger free cash flow (2.9B), providing more financial flexibility.

Bottom Line

SQM scores higher overall (66/100 vs 50/100) and 23.3% revenue growth. 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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Sociedad Quimica y Minera de Chile SA ADR B

BASIC MATERIALS · SPECIALTY CHEMICALS · USA

Sociedad Qumica y Minera de Chile SA produces and distributes specialty plant nutrients, iodine and its derivatives, lithium and its derivatives, potassium chloride and sulfate, industrial chemicals and other products and services worldwide. The company is headquartered in Santiago, Chile.

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