Merck & Company Inc (MRK)vsTakeda Pharmaceutical Co Ltd ADR (TAK)
MRK
Merck & Company Inc
$116.37
+0.60%
HEALTHCARE · Cap: $282.30B
TAK
Takeda Pharmaceutical Co Ltd ADR
$18.03
+0.92%
HEALTHCARE · Cap: $56.99B
Smart Verdict
WallStSmart Research — data-driven comparison
Takeda Pharmaceutical Co Ltd ADR generates 6767% more annual revenue ($4.46T vs $65.01B). MRK leads profitability with a 28.1% profit margin vs 2.5%. TAK appears more attractively valued with a PEG of 0.39. TAK earns a higher WallStSmart Score of 60/100 (C).
MRK
Buy59
out of 100
Grade: C
TAK
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-135.4%
Fair Value
$49.44
Current Price
$116.37
$66.93 premium
Margin of Safety
-77.5%
Fair Value
$10.30
Current Price
$18.02
$7.72 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 37 in profit
Strong operational efficiency at 32.8%
Keeps 28 of every $100 in revenue as profit
Attractively priced relative to earnings
Generating 1.8B in free cash flow
Growing faster than its price suggests
Reasonable price relative to book value
Every $100 of equity generates 150 in profit
Earnings expanding 330.2% YoY
Generating 317.5B in free cash flow
Large-cap with strong market position
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Earnings declined 19.3%
4.2% revenue growth
2.5% margin — thin
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 28.1% and operating margin at 32.8%.
Bull Case : TAK
The strongest argument for TAK centers on PEG Ratio, Price/Book, Return on Equity. PEG of 0.39 suggests the stock is reasonably priced for its growth.
Bear Case : MRK
The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.
Bear Case : TAK
The primary concerns for TAK are Revenue Growth, Profit Margin, P/E Ratio. A P/E of 82.0x leaves little room for execution misses. Thin 2.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
MRK carries more volatility with a beta of 0.26 — expect wider price swings.
MRK is growing revenue faster at 5.0% — sustainability is the question.
TAK generates stronger free cash flow (317.5B), providing more financial flexibility.
Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TAK scores higher overall (60/100 vs 59/100). Both earn "Buy" and "Buy" 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 →Takeda Pharmaceutical Co Ltd ADR
HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA
Takeda Pharmaceutical Company Limited is engaged in the research, development, manufacture and marketing of pharmaceuticals, over-the-counter drugs and quasi-drug consumer products, and other health care products. The company is headquartered in Tokyo, Japan.
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