Merck & Company Inc (MRK)vsTakeda Pharmaceutical Co Ltd ADR (TAK)
MRK
Merck & Company Inc
$150.91
+0.94%
HEALTHCARE · Cap: $355.10B
TAK
Takeda Pharmaceutical Co Ltd ADR
$18.89
-0.11%
HEALTHCARE · Cap: $60.84B
Smart Verdict
WallStSmart Research — data-driven comparison
Takeda Pharmaceutical Co Ltd ADR generates 6839% more annual revenue ($4.62T vs $66.57B). MRK leads profitability with a 4.8% profit margin vs -3.5%. TAK appears more attractively valued with a PEG of 0.41. TAK earns a higher WallStSmart Score of 53/100 (C-).
MRK
Hold36
out of 100
Grade: F
TAK
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-77.2%
Fair Value
$83.04
Current Price
$150.91
$67.87 premium
Intrinsic value data unavailable for TAK.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Generating 4.5B in free cash flow
Growing faster than its price suggests
Reasonable price relative to book value
Generating 73.8B in free cash flow
Large-cap with strong market position
Areas to Watch
Trading at 8.9x book value
ROE of 7.6% — below average capital efficiency
4.8% margin — thin
Elevated debt levels
ROE of 2.4% — below average capital efficiency
Earnings declined 9.8%
Distress zone — elevated risk
Currently unprofitable
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Free Cash Flow.
Bull Case : TAK
The strongest argument for TAK centers on PEG Ratio, Price/Book, Free Cash Flow. Revenue growth of 10.2% demonstrates continued momentum. PEG of 0.41 suggests the stock is reasonably priced for its growth.
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 : TAK
The primary concerns for TAK are Return on Equity, EPS Growth, Altman Z-Score.
Key Dynamics to Monitor
MRK profiles as a value stock while TAK is a turnaround play — different risk/reward profiles.
MRK carries more volatility with a beta of 0.23 — expect wider price swings.
TAK is growing revenue faster at 10.2% — sustainability is the question.
TAK generates stronger free cash flow (73.8B), providing more financial flexibility.
Bottom Line
TAK scores higher overall (53/100 vs 36/100) and 10.2% revenue growth. 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 →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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