WallStSmart

Merck & Company Inc (MRK)vsSTAAR Surgical Company (STAA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 27367% more annual revenue ($65.77B vs $239.44M). MRK leads profitability with a 13.6% profit margin vs -33.6%. STAA appears more attractively valued with a PEG of 0.76. MRK earns a higher WallStSmart Score of 50/100 (D+).

MRK

Hold

50

out of 100

Grade: D+

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

STAA

Hold

37

out of 100

Grade: F

Growth: 4.0Profit: 2.0Value: 7.7Quality: 8.0
Piotroski: 2/9Altman Z: 2.81
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
STAAUndervalued (+40.5%)

Margin of Safety

+40.5%

Fair Value

$29.00

Current Price

$26.69

$2.31 discount

UndervaluedFair: $29.00Overvalued

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

STAA3 strengths · Avg: 8.3/10
Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.768/10

Growing faster than its price suggests

Revenue GrowthGrowth
18.1%8/10

18.1% revenue growth

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

STAA4 concerns · Avg: 2.5/10
Market CapQuality
$1.36B3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Return on EquityProfitability
-21.7%2/10

ROE of -21.7% — below average capital efficiency

EPS GrowthGrowth
-10.5%2/10

Earnings declined 10.5%

Comparative Analysis Report

WallStSmart Research

Bull Case : MRK

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

Bull Case : STAA

The strongest argument for STAA centers on Debt/Equity, PEG Ratio, Revenue Growth. Revenue growth of 18.1% demonstrates continued momentum. PEG of 0.76 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 : STAA

The primary concerns for STAA are Market Cap, Piotroski F-Score, Return on Equity.

Key Dynamics to Monitor

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

STAA carries more volatility with a beta of 1.20 — expect wider price swings.

STAA is growing revenue faster at 18.1% — sustainability is the question.

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

Bottom Line

MRK scores higher overall (50/100 vs 37/100). STAA offers better value entry with a 40.5% margin of safety. Both earn "Hold" 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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STAAR Surgical Company

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

STAAR Surgical Company designs, develops, manufactures, markets and sells implantable eye lenses and supplemental delivery systems for placing the lenses in the eye. The company is headquartered in Lake Forest, California.

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