Merck & Company Inc (MRK)vsTheravance Biopharma Inc (TBPH)
MRK
Merck & Company Inc
$146.99
-0.16%
HEALTHCARE · Cap: $368.89B
TBPH
Theravance Biopharma Inc
$17.03
0.00%
HEALTHCARE · Cap: $884.18M
Smart Verdict
WallStSmart Research — data-driven comparison
Merck & Company Inc generates 64493% more annual revenue ($67.38B vs $104.31M). TBPH leads profitability with a 51.6% profit margin vs 3.6%. TBPH trades at a lower P/E of 16.4x. MRK earns a higher WallStSmart Score of 44/100 (D).
MRK
Hold44
out of 100
Grade: D
TBPH
Hold42
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-72.9%
Fair Value
$84.87
Current Price
$146.99
$62.12 premium
Margin of Safety
+70.1%
Fair Value
$65.28
Current Price
$17.03
$48.25 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 41.2%
Generating 5.5B in free cash flow
Keeps 52 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Areas to Watch
Trading at 8.7x book value
4.7% revenue growth
ROE of 5.5% — below average capital efficiency
3.6% margin — thin
0.0% earnings growth
Smaller company, higher risk/reward
Revenue declined 20.9%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : MRK
The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.
Bull Case : TBPH
The strongest argument for TBPH centers on Profit Margin, Debt/Equity, P/E Ratio. Profitability is solid with margins at 51.6% and operating margin at 8.9%.
Bear Case : MRK
The primary concerns for MRK are Price/Book, Revenue Growth, Return on Equity. A P/E of 151.0x leaves little room for execution misses. Thin 3.6% margins leave little buffer for downturns.
Bear Case : TBPH
The primary concerns for TBPH are EPS Growth, Market Cap, Revenue Growth.
Key Dynamics to Monitor
MRK profiles as a value stock while TBPH is a declining play — different risk/reward profiles.
TBPH carries more volatility with a beta of 0.24 — expect wider price swings.
MRK is growing revenue faster at 4.7% — sustainability is the question.
MRK generates stronger free cash flow (5.5B), providing more financial flexibility.
Bottom Line
MRK scores higher overall (44/100 vs 42/100). TBPH offers better value entry with a 70.1% margin of safety. Both earn "Hold" 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 →Theravance Biopharma Inc
HEALTHCARE · BIOTECHNOLOGY · USA
Theravance Biopharma, Inc., a diversified biopharmaceutical company, discovers, develops, and markets organ-selective drugs in the United States, Europe, and Asia. The company is headquartered in George Town, the Cayman Islands.
Visit Website →Compare with Other DRUG MANUFACTURERS - GENERAL Stocks
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