Merck & Company Inc (MRK)vsSTERIS plc (STE)
MRK
Merck & Company Inc
$143.93
-0.54%
HEALTHCARE · Cap: $355.10B
STE
STERIS plc
$210.76
-0.80%
HEALTHCARE · Cap: $21.30B
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 1003% more annual revenue ($66.57B vs $6.04B). STE leads profitability with a 13.3% profit margin vs 4.8%. STE appears more attractively valued with a PEG of 1.87. STE earns a higher WallStSmart Score of 60/100 (C).
MRK
Hold36
out of 100
Grade: F
STE
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-73.7%
Fair Value
$82.84
Current Price
$143.93
$61.09 premium
Margin of Safety
-48.8%
Fair Value
$163.58
Current Price
$210.76
$47.18 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Generating 4.5B in free cash flow
Conservative balance sheet, low leverage
Reasonable price relative to book value
Areas to Watch
Trading at 8.5x book value
ROE of 7.6% — below average capital efficiency
4.8% margin — thin
Elevated debt levels
Expensive relative to growth rate
Moderate valuation
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Free Cash Flow.
Bull Case : STE
The strongest argument for STE centers on Debt/Equity, Price/Book.
Bear Case : MRK
The primary concerns for MRK are Price/Book, Return on Equity, Profit Margin. A P/E of 116.1x leaves little room for execution misses. Thin 4.8% margins leave little buffer for downturns.
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 0.91 — expect wider price swings.
STE is growing revenue faster at 7.3% — sustainability is the question.
MRK generates stronger free cash flow (4.5B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
STE scores higher overall (60/100 vs 36/100). Both earn "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.
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