WallStSmart

Merck & Company Inc (MRK)vsTempus AI, Inc. Class A Common Stock (TEM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Merck & Company Inc generates 4721% more annual revenue ($65.77B vs $1.36B). MRK leads profitability with a 13.6% profit margin vs -22.2%. MRK earns a higher WallStSmart Score of 50/100 (D+).

MRK

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 8.0Value: 2.7Quality: 5.0
Piotroski: 3/9Altman Z: 2.30

TEM

Avoid

31

out of 100

Grade: F

Growth: 8.0Profit: 2.0Value: 5.0Quality: 5.5
Piotroski: 4/9Altman Z: -0.66
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MRKSignificantly Overvalued (-49.3%)

Margin of Safety

-49.3%

Fair Value

$80.88

Current Price

$120.79

$39.91 premium

UndervaluedFair: $80.88Overvalued

Intrinsic value data unavailable for TEM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MRK3 strengths · Avg: 9.3/10
Market CapQuality
$285.64B10/10

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

TEM1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
36.1%10/10

Revenue surging 36.1% year-over-year

Areas to Watch

MRK4 concerns · Avg: 3.5/10
P/E RatioValuation
32.6x4/10

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

TEM4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Debt/EquityHealth
1.963/10

Elevated debt levels

Price/BookValuation
20.0x2/10

Trading at 20.0x book value

Return on EquityProfitability
-72.7%2/10

ROE of -72.7% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : MRK

The strongest argument for MRK centers on Market Cap, Operating Margin, Free Cash Flow.

Bull Case : TEM

The strongest argument for TEM centers on Revenue Growth. Revenue growth of 36.1% demonstrates continued momentum.

Bear Case : MRK

The primary concerns for MRK are P/E Ratio, Revenue Growth, Debt/Equity.

Bear Case : TEM

The primary concerns for TEM are EPS Growth, Debt/Equity, Price/Book. Debt-to-equity of 1.96 is elevated, increasing financial risk.

Key Dynamics to Monitor

MRK profiles as a value stock while TEM is a hypergrowth play — different risk/reward profiles.

TEM is growing revenue faster at 36.1% — 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

MRK scores higher overall (50/100 vs 31/100). Both earn "Hold" and "Avoid" 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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Tempus AI, Inc. Class A Common Stock

HEALTHCARE · HEALTH INFORMATION SERVICES · USA

Tempus AI, Inc is a healthcare technology company. The company is headquartered in Chicago, Illinois.

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