WallStSmart

Merck & Company Inc (MRK)vsToyota Motor Corporation ADR (TM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Toyota Motor Corporation ADR generates 77503% more annual revenue ($50.45T vs $65.01B). MRK leads profitability with a 28.1% profit margin vs 7.3%. TM appears more attractively valued with a PEG of 1.54. MRK earns a higher WallStSmart Score of 59/100 (C).

MRK

Buy

59

out of 100

Grade: C

Growth: 4.0Profit: 9.5Value: 4.7Quality: 4.8
Piotroski: 3/9

TM

Buy

53

out of 100

Grade: C-

Growth: 5.3Profit: 5.0Value: 7.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MRKSignificantly Overvalued (-141.2%)

Margin of Safety

-141.2%

Fair Value

$49.50

Current Price

$119.37

$69.87 premium

UndervaluedFair: $49.50Overvalued
TMSignificantly Overvalued (-96.6%)

Margin of Safety

-96.6%

Fair Value

$121.38

Current Price

$210.93

$89.55 premium

UndervaluedFair: $121.38Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MRK6 strengths · Avg: 9.2/10
Market CapQuality
$287.71B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
36.9%10/10

Every $100 of equity generates 37 in profit

Operating MarginProfitability
32.8%10/10

Strong operational efficiency at 32.8%

Profit MarginProfitability
28.1%9/10

Keeps 28 of every $100 in revenue as profit

P/E RatioValuation
16.0x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.82B8/10

Generating 1.8B in free cash flow

TM2 strengths · Avg: 10.0/10
Market CapQuality
$273.41B10/10

Mega-cap, among the largest globally

P/E RatioValuation
11.8x10/10

Attractively priced relative to earnings

Areas to Watch

MRK3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.492/10

Expensive relative to growth rate

EPS GrowthGrowth
-19.3%2/10

Earnings declined 19.3%

TM4 concerns · Avg: 3.3/10
PEG RatioValuation
1.544/10

Expensive relative to growth rate

Price/BookValuation
11.2x4/10

Trading at 11.2x book value

Profit MarginProfitability
7.3%3/10

7.3% margin — thin

EPS GrowthGrowth
-42.3%2/10

Earnings declined 42.3%

Comparative Analysis Report

WallStSmart Research

Bull 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 : TM

The strongest argument for TM centers on Market Cap, P/E Ratio.

Bear Case : MRK

The primary concerns for MRK are Piotroski F-Score, PEG Ratio, EPS Growth.

Bear Case : TM

The primary concerns for TM are PEG Ratio, Price/Book, Profit Margin.

Key Dynamics to Monitor

MRK carries more volatility with a beta of 0.26 — expect wider price swings.

TM is growing revenue faster at 8.6% — sustainability is the question.

MRK generates stronger free cash flow (1.8B), providing more financial flexibility.

Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MRK scores higher overall (59/100 vs 53/100), backed by strong 28.1% margins. 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.

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Toyota Motor Corporation ADR

CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA

Toyota Motor Corporation designs, manufactures, assembles and sells passenger cars, minivans and commercial vehicles, and related parts and accessories. The company is headquartered in Toyota, Japan.

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