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 1.76. STE earns a higher WallStSmart Score of 68/100 (B-).

MRK

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 8.0Value: 2.7Quality: 5.0
Piotroski: 3/9Altman Z: 2.27

STE

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 6.5Value: 4.0Quality: 8.5
Piotroski: 7/9Altman Z: 2.65
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MRKSignificantly Overvalued (-62.3%)

Margin of Safety

-62.3%

Fair Value

$81.23

Current Price

$130.40

$49.17 premium

UndervaluedFair: $81.23Overvalued
STESignificantly Overvalued (-51.8%)

Margin of Safety

-51.8%

Fair Value

$160.37

Current Price

$234.83

$74.46 premium

UndervaluedFair: $160.37Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MRK3 strengths · Avg: 9.3/10
Market CapQuality
$307.25B10/10

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

STE3 strengths · Avg: 9.0/10
EPS GrowthGrowth
52.2%10/10

Earnings expanding 52.2% YoY

Debt/EquityHealth
0.299/10

Conservative balance sheet, low leverage

Operating MarginProfitability
20.0%8/10

Strong operational efficiency at 20.0%

Areas to Watch

MRK4 concerns · Avg: 3.5/10
P/E RatioValuation
35.6x4/10

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

STE2 concerns · Avg: 4.0/10
PEG RatioValuation
1.764/10

Expensive relative to growth rate

P/E RatioValuation
27.5x4/10

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, Operating Margin.

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 PEG Ratio, 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 (68/100 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.

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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.

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