WallStSmart

Merck & Company Inc (MRK)vsSTERIS plc (STE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 1008% more annual revenue ($65.77B vs $5.94B). MRK leads profitability with a 13.6% profit margin vs 13.2%. STE appears more attractively valued with a PEG of 1.41. STE earns a higher WallStSmart Score of 70/100 (B).

MRK

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 8.0Value: 2.7Quality: 5.0
Piotroski: 3/9Altman Z: 2.30

STE

Strong Buy

70

out of 100

Grade: B

Growth: 7.3Profit: 6.5Value: 4.7Quality: 7.8
Piotroski: 7/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MRKSignificantly Overvalued (-49.3%)

Margin of Safety

-49.3%

Fair Value

$80.88

Current Price

$120.79

$39.91 premium

UndervaluedFair: $80.88Overvalued
STESignificantly Overvalued (-52.2%)

Margin of Safety

-52.2%

Fair Value

$159.97

Current Price

$212.35

$52.38 premium

UndervaluedFair: $159.97Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MRK3 strengths · Avg: 9.3/10
Market CapQuality
$285.64B10/10

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

STE4 strengths · Avg: 8.8/10
EPS GrowthGrowth
52.2%10/10

Earnings expanding 52.2% YoY

Debt/EquityHealth
0.299/10

Conservative balance sheet, low leverage

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
20.0%8/10

Strong operational efficiency at 20.0%

Areas to Watch

MRK4 concerns · Avg: 3.5/10
P/E RatioValuation
32.6x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

Debt/EquityHealth
1.073/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

STE1 concerns · Avg: 4.0/10
P/E RatioValuation
26.2x4/10

Moderate valuation

Comparative Analysis Report

WallStSmart Research

Bull Case : MRK

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

Bull Case : STE

The strongest argument for STE centers on EPS Growth, Debt/Equity, Price/Book. PEG of 1.41 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 : STE

The primary concerns for STE are P/E Ratio.

Key Dynamics to Monitor

STE carries more volatility with a beta of 0.92 — expect wider price swings.

STE is growing revenue faster at 7.3% — 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

STE scores higher overall (70/100 vs 50/100). 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.

Visit Website →

STERIS plc

HEALTHCARE · MEDICAL DEVICES · USA

Steris Corporation is an American Irish-domiciled medical equipment company specializing in sterilization and surgical products for the US healthcare system.

Want to dig deeper into these stocks?